HDB Financial Services Gears Up for Major IPO Move

HDB Financial Services plans to raise Rs 12,500 crore through an IPO, consisting of a fresh issue of Rs 2,500 crore and an Offer-for-Sale of Rs 10,000 crore by HDFC Bank. The move follows RBI's directive for NBFCs to list within three years, to aid future growth.

HDB Financial Services, a subsidiary of HDFC Bank, has initiated the process to raise Rs 12,500 crore via an IPO, submitting preliminary documentation to capital markets overseer, Sebi.

The draft red herring prospectus indicates the IPO will feature a Rs 2,500 crore fresh equity issue, alongside a Rs 10,000 crore Offer-for-Sale by promoter HDFC Bank. HDFC Bank presently maintains a majority 94.36% stake in HDB Financial Services.

The IPO aims to bolster HDB's Tier-I capital, crucial for fulfilling future lending and growth ambitions, and adheres to an RBI directive for NBFCs to be publicly listed within three years.

(With inputs from agencies.)