New Delhi: HDFC Bank gave its nod for HDB Financial Services’ IPO comprising fresh issuance of shares of face value Rs 10 apiece worth Rs 2,500 crore, according to an exchange filing. HDFC Bank was required to spin off HDB Financial Services for the sake of regulatory compliance with RBI rules related to the listing of upper layer NBFCs. HDB Financial Services is an NBFC that does not take deposits. The company specialises in financing individuals as well as small businesses. HDB Financial Services received an in-principle nod to start its IPO process in July 2024.
HDB Financial Services IPO will also comprise and an offer for sale of shares by current and eligible shareholders. This is subject to clearance from shareholders among other factors, the bank said. HDFC Bank’s board also cleared the articles of association. The company’s ESOP scheme was also changed in compliance with regulatory requirements.
HDFC Bank’s ownership of HDB Financial Services
India’s largest private lender owns a 94.64 per cent stake in HDB Financial Services. The latter’s net worth stood at around Rs 13,300 crore at the end of the June quarter. HDFC Bank’s nod to HDB Financial Services’ listing followed the recent record listing of Bajaj Housing Finance’s listing on the exchanges.
The RBI rule requires upper layer non-bank lenders to list on the exchanges in the interest of the health of the larger financial system. Other companies identified by RBI as upper layer NBFCs include Tata Capital Financial Services, Aditya Birla Finance, Tata Sons, and Piramal Capital and Housing Finance. These entities are required on the exchanges within one year. Piramal Capital and Housing is expected to merge with Piramal Enterprises. Meanwhile, Tata Sons is eyeing opportunities to avoid listing. Tata Capital and Aditya Birla Finance are likely to list on the exchanges soon, PTI reported citing investment bankers.
HDB Financial Services IPO: India’s largest private lender HDFC Bank’s board gave its nod for a Rs 2,500 crore IPO for its NBFC company HDB Financial Services. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
