HDFC Bank Board Approves Sale Of Rs 10,000 Crore Worth Of Its Stake In HDB Financial
The private lender will sell this stake through an offer-for-sale in HDB Financial's initial public offering
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HDFC Bank branch in Mumbai. (Photographer: Vijay Sartape/ NDTV Profit)
HDFC Bank Ltd.'s board has approved the sales of up to Rs 10,000 crore in its subsidiary HDB Financial Services Ltd. The private lender will sell this stake through an offer-for-sale in HDB Financial's initial public offering.
An exchange filing by the bank said the IPO of HDB Financial will have a total issue of Rs 12,500 crore, including a Rs 2,500 crore fresh issue and Rs 10,000 crore as an offer-for-sale.
The price and other details of the proposed IPO will be determined in due course by the competent body, the company said. "Please note that post the proposed IPO, HDBFS would continue to be a subsidiary of the bank, in compliance with the provisions of the applicable regulations."
In September, the bank had informed the exchanges of its fresh issue.
HDB Financial is tapping the IPO to meet the mandatory requirement of being listed by September 2025, according to a circular from the Reserve Bank of India in October 2022.
The central bank had 15 upper-layer NBFCs as of September 2023, and as per new law, the unlisted companies were required to be listed within three years. Other unlisted lenders in the list include Tata Capital Financial Services and Piramal Capital & Housing Finance.
