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HDFC Bank has set the ball rolling for the much-anticipated initial public offering of its subsidiary HDB Financial Services. The country's largest lender by market capitalization intends to schedule the launch of the share sale in its financial services arm in the last quarter of calendar 2024 or the first quarter of 2025, said sources familiar with the development.

HDFC Bank gears up to list NBFC arm HDB Financial

HDB Financial Services, a subsidiary of HDFC Bank, is planning to raise about Rs 2,500 crore of debt capital to support business growth. The subordinated debt is to the tune of Rs 2,000 crore while perpetual debt is nearly Rs 500 crore. After witnessing asset quality pressures in the aftermath of the Covid-19 pandemic, the finance company has improved its risk profile and health to support sustained growth in loan book.

HDB Fin Services to raise Rs 2,500 crore via debt capital for biz growth

As HDB Financial Services heads for its initial public offering (IPO), shares of the nonbank lender owned by the country’s most-valued bank in the unlisted market have seen a sharp rise — up to ₹1,200 apiece. After the IPO plan was announced, the shares rose to a high of ₹1,400 apiece before settling at ₹1,200. However, brokers in the unlisted market say the euphoria is not justified as they expect the IPO to be priced around ₹750-₹800.

IPO-bound HDB Financial stock soars in unlisted market

The second wave of COVID-19 led disruptions impacted the borrowers’ repaying ability thereby resulting in sharp NPA spikes.

The issuer has made timely interest payments.

Mr. G. Ramesh, MD and CEO	

Mr. Arijit Basu, Chairman

HDBFS has strong linkages with HBL in terms of sharing of brand name & logo which also enables it to
raise funds at competitive rates of interest.


HDBFS has emerged as one of the big players in the retail financing space and has diversified the loan book over the years.


The operations of the company are headed by G Ramesh (MD and CEO) who has around 27 years of experience across business development, banking, consumer finance and operations, HDBFS’s Board comprises five directors, who have extensive experience in various facets of banking and finance.


Regular capital infusion by HBL in the past and internal accruals have helped HDBFS to maintain a comfortable capitalization profile.

Security Name: 8.70% HDB Financial Services Limited (P) Call : 29 Nov 2029

ISIN:

INE756I08207

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HDB Financial Services Limited

Recent News

HDFC Bank gears up to list NBFC arm HDB Financial

HDB Fin Services to raise Rs 2,500 crore via debt capital for biz growth

IPO-bound HDB Financial stock soars in unlisted market

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