HDFC unit is said to near SEBI nod for $1.5 billion IPO

HDB Financial Services Ltd. is nearing approval from India's securities regulator for its initial public offering (IPO), according to sources familiar with the matter. This approval would enable the shadow lender to launch one of the largest listings in the country this year.

The Securities and Exchange Board of India (SEBI) is expected to make its decision public in the coming weeks. The company is planning to begin engaging with prospective investors next month, as indicated by one source who requested anonymity due to the private nature of the discussions. SEBI did not respond to an email seeking comment, and a call to HDB Financial Services went unanswered.

If approved, this IPO would allow HDB, a unit of HDFC Bank Ltd., the largest private sector lender in India, to move forward with a deal that could raise $1.5 billion. This approval comes after months of waiting for regulatory clearance and would serve as a test of the Indian IPO market's ability to regain some momentum, following a busy year for new listings in 2022.

At $1.5 billion, it would become the largest IPO ever for a shadow bank in India and the biggest across all sectors since Hyundai Motor India Ltd.'s $3.3 billion offering last year. Meanwhile, South Korea's LG Electronics Inc. had planned to go public with its Indian unit this year but has paused its efforts amid market turmoil triggered by India's slowing economic growth and US tariffs.​