HDB Financial Services Files DRHP For Rs 12,500-Crore IPO
HDB Financial Services Ltd. filed its draft red herring prospectus with the Securities and Exchange Board of India to raise up to Rs 12,500 crore through an initial public offer. The offer entails both fresh issue and offer for sale.
The financial services company will offer equities with a face value of Rs 10 each worth Rs 2,500 crore as fresh issue. Promoter HDFC Bank will sell Rs 10,000-crore equities with a face value of Rs 10 each in the subsidiary.
HDFC Bank owns 94.6% stake in HDB Financial Services. After fundraise from the primary market, HDB Financial Services will continue to be its subsidiary, the private lender said earlier in the month.
HDB Financial Services is going for the initial public offer as the Reserve Bank of India mandated that large non–banking financial services companies are required to be listed on the exchanges by financial year 2025.
HDB Financial Services will use the proceeds from the fresh issue to bear some of the expenses of the initial public offer. Most of the amount will go in augmenting its Tier I capital base, for future capital requirements, and onward lending rising from the growth of the business, the company said in the DRHP.
JM Financial Ltd., BNP Paribas, BofA Securities India Ltd., Goldman Sachs (India) Securities Pvt. Ltd., HSBC Securities and Capital Markets (India) Pvt. Ltd., IIFL Securities Ltd., Jefferies India Pvt. Ltd., Morgan Stanley India Co. Pvt. Ltd., Motilal Oswal Investment Advisors Ltd., Nomura Financial Advisory and Securities (India) Pvt. Ltd., Nuvama Wealth Management Ltd. Ltd., and UBS Securities India Pvt. Ltd. are the lead book running managers.
HDB Financial Services will consider pre–IPO placement after consulting with the lead book running managers in case they opt for the option.
The company is yet to take a decision about the offer price, price band, minimum bid size and will determine these in consultation with the lead book running managers, the DRHP said. Its shares will be listed both on the National Stock Exchanges and BSE after offer concludes.
Incorporated in 2007, HDB Financial Services is a diversified retail–focused non–banking financial company in terms of gross loan book size, the company said in the DRHP citing CRISIL Report. The RBI has listed the company as an upper layer NBFC.
HDB Financial Services' gross loan book stands at Rs 98,620 crore as of Sept 30, which reflects CAGR of 20.93% in two years to 2024. Its assets under management stand at Rs 90,230 crore as of March, the company revealed in the DRHP.
In financial year 2023–24, HDB Financial Services generated a profit of Rs 2,460 crore, which reflected a CAGR of 55.98% between financial year 2022 and 2024, the DRHP said.
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