HDB Financial IPO: The Indian stock market is abuzz in anticipation of a mega ₹12,500 crore initial public offer (IPO) of HDB Financial Services, a subsidiary of HDFC Bank.
HDB Financial, an upper-layer non-banking finance company (NBFC), will launch its IPO next week on June 25, wherein the promoter HDFC Bank is looking to offload a stake worth ₹10,000 crore. The remaining ₹2,500 crore will be raised via the fresh share sale.
HDB Financial IPO price band declared earlier today in the range of ₹700-740 apiece, also promises strong returns from HDFC Bank. According to Mint’s calculation, HDFC Bank stands to make a return of 1,495% considering the acquisition price of India’s biggest private lender and the upper end of HDB Financial IPO’s price band of ₹740.
The red herring prospectus filed by HDB Financial Services stated the weighted average cost of acquisition by HDFC Bank in the NBFC arm as ₹46.4 per share. At present, HDFC Bank holds a 94.36 per cent stake in HDB Financial Services.
The decision to list HDB Financial Services follows the Reserve Bank of India’s mandate in October 2022, requiring NBFCs in the upper layer to list on the stock exchanges within three years.
HDB Financial IPO: Biggest listing of 2025 yet
HDB Financial IPO, which is a mix of fresh issue and offer for sale, will be the biggest listing for the Indian stock market in 2025.
