Suspense Crime Sach Ka Dam
The way has been cleared for another big IPO. The board of directors of HDFC Bank, the largest private sector bank, has approved its subsidiary company HDB Financial Services to launch an IPO. Under this, the sale of shares worth Rs 12,500 crore including an offer for sale (OFS) of Rs 10,000 crore related to HDB has been approved. HDFC Bank said in a notice to the stock market on Saturday that the initial public offering (IPO) will be for several equity shares of HDB Financial Services with a face value of Rs 10, which will total up to Rs 12,500 crore, which includes a fresh issue of Rs 2,500 crore and an OFS of up to Rs 10,000 crore.
The price band is not fixed.
The price and other details of the proposed IPO will be determined by the competent body in due course. HDB Financial Services will continue to be a subsidiary of the bank after the proposed IPO. HDFC Bank holds a 94.64 percent stake in non-banking financial company (NBFC) HDB Financial Services.
About HDB Financial Services
HDB Financial Services was established in 2007. The company provides secured and unsecured loans. It has more than 1,680 branches across India. HDB Financial Services reported a net worth of around ₹13,300 crore in the June quarter. The listing of the NBFC is happening due to the new RBI norms. The decision to list HDB Financial Services follows the Reserve Bank of India’s (RBI) order in October 2022, which requires large NBFCs to be listed on stock exchanges. The NBFC recorded a 17% year-on-year growth in its loan book in FY23 to Rs 66,000 crore. This growth was led by strong demand for personal loans, vehicle loans, and small business financing. Meanwhile, the company’s net profit stood at Rs 1,740 crore in FY23.
