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    HDB Financial IPO Opens June 25 – Valuation Hits Rs 61,400 Crore

    20 hours ago

    HDB Financial Services, a subsidiary of HDFC Bank, on Friday fixed a price band of Rs 700-740 per share for its Rs 12,500 crore Initial Public Offering (IPO).

    At the upper end of the price band, the company is valued at nearly Rs 61,400 crore.

    HDB Financial Services' maiden public issue will open for subscription on June 25 and conclude on June 27, while the bidding for the anchor investor will open for a day on June 24, the company announced.

    The IPO is a combination of a fresh issue of equity shares worth Rs 2,500 crore and an Offer For Sale (OFS) of Rs 10,000 crore by promoter HDFC Bank. At present, HDFC Bank holds a 94.36 per cent stake in HDB Financial Services, a non-banking financial company (NBFC) arm of the bank.

    The company proposes to utilise the proceeds from the fresh issue to strengthen its Tier-I capital base. This will support future capital needs, including additional lending, to support business growth.

    The decision to list HDB Financial Services follows the Reserve Bank of India's mandate in October 2022, requiring NBFCs in the upper layer to list on the stock exchanges within three years.

    Also Read : Indian Money In Swiss Banks Triples To Rs 37,600 Crore In 2024, Highest Since 2021: SNB Data

    Last year, HDFC Bank's board approved a share sale worth Rs 12,500 crore, comprising Rs 10,000 crore OFS related to HDB Financial Services.

    After the proposed IPO, HDB Financial Services will continue to be a subsidiary of the bank, in compliance with the provisions of the applicable regulations.

    Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

    Further, investors can bid for 20 shares and in multiple thereof. A dozen book-running lead managers -- JM Financial, BNP Paribas, BofA Securities India, Goldman Sachs (India) Securities, HSBC Securities and Capital Markets (India) Pvt Ltd, IIFL Securities, Jefferies India, Morgan Stanley India Company, Motilal Oswal Investment Advisors, Nomura Financial Advisory and Securities (India) Pvt Ltd, Nuvama Wealth Management, and UBS Securities India-- are managing the company's IPO.

    The company is expected to list on the BSE and NSE on July 2.

    (This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.) 

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