HDB Financial Services Sets IPO Price Band, Eyes Growth with Rs 12,500 Crore Offering

HDB Financial Services, the subsidiary of HDFC Bank, has set its initial public offering (IPO) price band between Rs 700 and Rs 740 per share. With the goal to raise Rs 12,500 crore, the IPO marks a significant milestone for the financial entity eager to expand its horizons.

The IPO, comprising a Rs 2,500 crore fresh equity issue and a Rs 10,000 crore Offer For Sale by HDFC Bank, aims to fortify HDB Financial Services' Tier-I capital base. The move is poised to fulfill the Reserve Bank of India's mandate from October 2022, which directed non-banking financial companies (NBFCs) to get listed within three years.

As the issue opens to various investors at the end of June, it highlights a strategic financial maneuver to accommodate future capital requirements. The IPO stands to bolster lending capabilities and sustain business growth, ensuring HDB Financial Services remains a potent subsidiary of HDFC Bank. The firm is anticipated to debut on BSE and NSE by early July.

(With inputs from agencies.)