HDFC Bank Approves Rs 2,500 Crore IPO for HDB Financial Services
By Rediff Money Desk, New Delhi Sep 20, 2024 18:32
HDFC Bank has cleared a Rs 2,500 crore IPO for its subsidiary HDB Financial Services. The move follows RBI's mandate for upper-layer NBFCs to list.
New Delhi, Sep 20 (PTI) HDFC Bank on Friday said that its board has given in-principle approval to initiate the process of listing equity shares of its subsidiary HDB Financial Services.
The board has cleared the proposal for the initial public offering of equity shares of HDB Financial Services of face value of Rs 10 each comprising of a fresh issue of shares up to Rs 2,500 crore, HDFC Bank said in a regulatory filing.
Besides, it said, the board also cleared a proposal for an offer for sale of equity shares by existing and eligible shareholders of the company who may offer to tender their equity which is subject to approval of the shareholders of the company, market conditions, receipt of applicable approvals, regulatory clearances and other considerations.
In addition, the parent entity also cleared amendment to the articles of association of the company and amendment to the Employee Stock Option Scheme 2014, Employee Stock Option Scheme 2017 and Employee Stock Option Scheme 2022 in order to comply with the regulatory requirements.
HDFC Bank holds a 94.64 per cent stake in HDB Financial Services, an NBFC arm of the bank.
HDB Financial Services closed the June quarter with a net worth of approximately Rs 13,300 crore.
The decision to list HDB Financial Services follows the Reserve Bank of India's mandate in October 2022, requiring non-banking financial companies (NBFCs) in the 'upper layer' to list on the stock exchanges.
The board approval for HDB Financial Services IPO also came shortly after the successful listing of Bajaj Housing Finance.
The two other NBFCs that are likely to float public issues are Tata Capital Financial Services and Aditya Birla Finance, investment bankers said.
Overall, Tata Sons, Tata Capital Financial Services, Piramal Capital and Housing Finance, and Aditya Birla Finance are required to list in a year's time due to their inclusion in the Reserve Bank of India's (RBI) list of 'upper layer' NBFCs.
Of these, Piramal Capital and Housing Finance will merge with Piramal Enterprises and Tata Sons is likely to consider all options to avoid listing, bankers said.
The board has cleared the proposal for the initial public offering of equity shares of HDB Financial Services of face value of Rs 10 each comprising of a fresh issue of shares up to Rs 2,500 crore, HDFC Bank said in a regulatory filing.
Besides, it said, the board also cleared a proposal for an offer for sale of equity shares by existing and eligible shareholders of the company who may offer to tender their equity which is subject to approval of the shareholders of the company, market conditions, receipt of applicable approvals, regulatory clearances and other considerations.
In addition, the parent entity also cleared amendment to the articles of association of the company and amendment to the Employee Stock Option Scheme 2014, Employee Stock Option Scheme 2017 and Employee Stock Option Scheme 2022 in order to comply with the regulatory requirements.
HDFC Bank holds a 94.64 per cent stake in HDB Financial Services, an NBFC arm of the bank.
HDB Financial Services closed the June quarter with a net worth of approximately Rs 13,300 crore.
The decision to list HDB Financial Services follows the Reserve Bank of India's mandate in October 2022, requiring non-banking financial companies (NBFCs) in the 'upper layer' to list on the stock exchanges.
The board approval for HDB Financial Services IPO also came shortly after the successful listing of Bajaj Housing Finance.
The two other NBFCs that are likely to float public issues are Tata Capital Financial Services and Aditya Birla Finance, investment bankers said.
Overall, Tata Sons, Tata Capital Financial Services, Piramal Capital and Housing Finance, and Aditya Birla Finance are required to list in a year's time due to their inclusion in the Reserve Bank of India's (RBI) list of 'upper layer' NBFCs.
Of these, Piramal Capital and Housing Finance will merge with Piramal Enterprises and Tata Sons is likely to consider all options to avoid listing, bankers said.
Source: PTI
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Vodafone Idea L
- 10.41 (+ 0.48)
- 53727067
- GTL Infrastructure
- 2.41 (+ 4.78)
- 49996392
- Five-Star Business F
- 797.20 ( -1.39)
- 47756593
- Spicejet Ltd.
- 61.84 ( -0.87)
- 37121295
- Reliance Power L
- 44.16 (+ 4.99)
- 36538149
MORE NEWS
Gulf Oil Promoter Sells 4% Stake for Rs 263 Crore
Gulf Oil International Mauritius Inc. sold a 4% stake in Gulf Oil Lubricants India for...
Zaggle Acquires Stakes in Span Across IT &...
Fintech firm Zaggle invests Rs 48 crore in Span Across IT Solutions and Mobileware...
Swiggy Files Updated IPO Papers: Eyes Rs 3,750 Cr
Swiggy files updated IPO papers with Sebi, aiming to raise Rs 3,750 crore through fresh...