HDFC Bank to Offload ₹10,000 Crore in Shares as HDB Financial Services Prepares ₹12,500 Crore IPO
HDFC Bank aims to divest a significant stake in HDB Financial Services through a major IPO offering."
The much-anticipated IPO of HDB Financial Services is set to launch by the end of the current financial year, subject to market conditions and regulatory approvals. HDFC Bank announced on October 19 that it will offload ₹10,000 crore worth of shares through an offer for sale (OFS) in the IPO of its subsidiary. The total issue size will be ₹12,500 crore, which includes a fresh share sale of ₹2,500 crore.
Despite the sale, HDB Financial Services will remain a subsidiary of HDFC Bank, which currently holds a 94.64% stake in the company. The bank had been required to list its non-banking financial company (NBFC) by September 25 to comply with regulatory guidelines. HDB Financial Services serves retail and commercial segments, offering products like personal loans, vehicle loans, and loans against property.
HDB Financial Services’ net profit declined by 1.63% in Q2 FY25, reporting ₹591 crore compared to ₹600.8 crore in the previous quarter. However, the company saw a 13.97% increase in sales, recording ₹4,006.8 crore in Q2 FY25, up from ₹3,515.7 crore in Q2 FY24.
This IPO comes in the context of new regulations requiring upper-layer NBFCs, like Tata Capital Financial Services and Piramal Capital & Housing Finance, to list within three years.
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