HDFC Bank subsidiary HDB Financial Services Ltd has received regulatory approval from the Securities and Exchange Board of India (Sebi) for its much-anticipated Rs 12,500 crore initial public offering (IPO). The regulator also approved the IPOs of five other companies. The six IPOs together are slated to raise over Rs 20,000 crore.
HDB Financial had earlier filed its draft red herring prospectus (DRHP), aiming to raise Rs 2,500 crore through a fresh issue and Rs 10,000 crore via offer for sale (OFS) by parent company HDFC Bank. This makes it one of the largest IPOs by a non-banking entity in the Indian capital market.
HDB Financial Services ownership
HDFC Bank holds 94.36 per cent stake in HDB Financial Services, a non-banking financial company (NBFC). The company proposes to utilise the proceeds from the fresh issue to strengthen its Tier-I capital base. This will support future capital needs, including additional lending, to support business growth.
Incorporated in 2007, HDB Financial Services provides secured and unsecured loans and has more than 1,680 branches across India. It closed the June quarter with a net worth of about Rs 13,300 crore. The decision to list HDB Financial Services follows the Reserve Bank of India (RBI)’s mandate in October 2022, requiring NBFCs in the upper layer to list on the stock exchanges.
Sebi nod to 5 more IPOs
Apart from HDB Financial, five more companies have received Sebi’s go ahead to raise funds through IPOs. These include Vikram Solar, A-One Steels India, Shanti Gold International, Dorf-Ketal Chemicals, and Shreeji Shipping Global Ltd.
These six firms, which filed their preliminary IPO papers with the markets regulator between October 2024 and January 25, 2025, obtained their observations during May 27-30, the Sebi update showed.
Vikram Solar’s IPO is a mix of fresh issue of shares up to Rs 1,500 crore and an OFS of up to 17.45 million shares by promoter and promoter group selling shareholders.
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Mumbai-based Dorf-Ketal Chemicals India has proposed to raise Rs 5,000 crore via IPO, which will be a combination of fresh issue of shares worth Rs 1,500 crore, and an OFS of Rs 3,500 crore worth shares by Menon Family Holdings, the promoter. It had filed draft red herring prospectus for its IPO on January 23 this year.