Upper layer NBFC HDB Financial Services prepares for IPO

After Bajaj Housing Finance went public, HDB Financial Services, another upper-layer NBFC, is planning to tap into the IPO market to meet the RBI's mandatory listing requirements. HDFC Bank, the parent company of HDB Financial Services, has approved an IPO consisting of a fresh issue of shares worth up to Rs 2,500 crore and an offer for sale by existing shareholders. Many other NBFCs are also expected to pursue listing to meet the RBI's requirements and raise funds more easily after being listed. The RBI introduced a revised regulation framework in October 2021, categorizing NBFCs into different layers and mandating that upper-layer NBFCs must be listed within three years of their designation as such. HDB Financial Services is one of the major NBFCs identified by the RBI to be part of the upper layer. Additionally, the RBI's recent report on the NBFC sector indicates strong performance metrics and improvements since the implementation of the revised regulation framework.