HDB Financial Services IPO Opens June 25

New Delhi, Jun 19 (PTI) The Rs 12,500-crore initial public offering (IPO) of HDB Financial Services, a subsidiary of HDFC Bank, would open for public subscription on June 25.

The bid or offer opens on June 25 and closes on June 27, while the anchor investor bidding date would be June 24 for HDB Financial Services, HDFC Bank said in a regulatory filing on Thursday.

HDB Financial Services on Thursday filed the red herring prospectus with the Registrar of Companies, Gujarat, Dadra and Nagar Haveli at Ahmedabad in connection with the initial public offering, it said.

The offer includes reservation for subscription by the eligible employees of the company and eligible HDFC Bank shareholders, it said.

The proposed 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, according to the draft red herring prospectus (DRHP).

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.

Last year, HDFC Bank's board approved a share sale worth Rs 12,500 crore comprising Rs 10,000 crore offer for sale (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.