04 September 2024
HDB Financial Services, the finance division of HDFC Bank, is considering advisors from Bank of America Securities, Morgan Stanley, and Nomura for a potential initial public offering (IPO). More banks may join the discussion. A decision is expected in the next few weeks. If the IPO moves forward, HDFC Bank may sell around 10% of its stake to raise about ₹10,000 crore ($1.2 billion). The company is currently in the final stages of selecting lead managers after receiving permission from HDFC Bank to begin the listing process last month. HDB Financial Services believes the timing is right for the IPO as the market is favorable. HDB's stocks are currently valued at about ₹100 crore ($10.7 billion) in the grey market. On July 20, HDFC Bank's board provided in-principle approval to begin listing HDB Financial Services and a committee of directors has been authorized to oversee the process. The listing is necessary to comply with regulatory guidelines set by the Reserve Bank of India (RBI). HDB is in the upper layer of non-banking finance companies (NBFCs) and needs to be listed by September 2025 as per regulatory requirements. These companies are categorized based on their size and importance within the system, with those in the upper layer facing the highest level of scrutiny.
HDB Financial Services, the finance division of HDFC Bank, is considering advisors from Bank of America Securities, Morgan Stanley, and Nomura for a potential initial public offering (IPO). More banks may join the discussion. A decision is expected in the next few weeks. If the IPO moves forward, HDFC Bank may sell around 10% of its stake to raise about ₹10,000 crore ($1.2 billion). The company is currently in the final stages of selecting lead managers after receiving permission from HDFC Bank to begin the listing process last month. HDB Financial Services believes the timing is right for the IPO as the market is favorable. HDB's stocks are currently valued at about ₹100 crore ($10.7 billion) in the grey market. On July 20, HDFC Bank's board provided in-principle approval to begin listing HDB Financial Services and a committee of directors has been authorized to oversee the process. The listing is necessary to comply with regulatory guidelines set by the Reserve Bank of India (RBI). HDB is in the upper layer of non-banking finance companies (NBFCs) and needs to be listed by September 2025 as per regulatory requirements. These companies are categorized based on their size and importance within the system, with those in the upper layer facing the highest level of scrutiny.
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