Leading private lender HDFC Bank will offload about Rs 10,000 crore worth stake in the proposed IPO of its unit HDB Financial Services. HDFC Bank holds a 94.6% stake in the company.
Under the IPO, the fresh equity sale will be Rs 2,500 crore, taking the total size of the issue to around Rs 12,500 crore. Earlier, HDFC Bank's board approved taking HDB Financial public.
The price and other details of the proposed IPO, which is the first for the group in six years, will be determined in due course.
HDB Financial's listing follows new norms introduced by the country's central bank in 2022 that required large non-banking financial companies (NBFC) to be listed on stock exchanges by September 2025.
The proceeds from the IPO are likely to be used for expanding its lending book and enhancing digital infrastructure.
HDB Financial Services is a leading non-banking financial company (NBFC), primarily catering to the retail and commercial segments, offering a wide range of financial products and services.
It specialises in secured and unsecured lending, asset finance, consumer loans, and loan against property. HDBFS has established itself as a trusted financial partner for individuals, small businesses, and enterprises across India.
The NBFC reported a 17% year-on-year growth in its loan book for FY23 at Rs 66,000 crore. The growth was driven by robust demand for personal loans, vehicle loans, and small business financing. Meanwhile, the company’s net profit for FY23 stood at Rs 1,740 crore.
Under the IPO, the fresh equity sale will be Rs 2,500 crore, taking the total size of the issue to around Rs 12,500 crore. Earlier, HDFC Bank's board approved taking HDB Financial public.
The price and other details of the proposed IPO, which is the first for the group in six years, will be determined in due course.
HDB Financial's listing follows new norms introduced by the country's central bank in 2022 that required large non-banking financial companies (NBFC) to be listed on stock exchanges by September 2025.
The proceeds from the IPO are likely to be used for expanding its lending book and enhancing digital infrastructure.
HDB Financial Services is a leading non-banking financial company (NBFC), primarily catering to the retail and commercial segments, offering a wide range of financial products and services.
It specialises in secured and unsecured lending, asset finance, consumer loans, and loan against property. HDBFS has established itself as a trusted financial partner for individuals, small businesses, and enterprises across India.
The NBFC reported a 17% year-on-year growth in its loan book for FY23 at Rs 66,000 crore. The growth was driven by robust demand for personal loans, vehicle loans, and small business financing. Meanwhile, the company’s net profit for FY23 stood at Rs 1,740 crore.
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