HDB Financial Services taps global I-Banks for IPO
HDB Financial Services, the non-banking finance arm of HDFC Bank, is in talks with Bank of America Securities, Morgan Stanley and Nomura to shortlist advisors to a proposed initial public offering (IPO), said people aware of the development. More banks may come on board. The talks are preliminary, and a final decision is expected in the next few weeks, said the people.
HDFC Bank could dilute nearly 10% to raise around ₹10,000 crore ($1.2 billion).
«The NBFC (non-banking finance company) is in the final stage of appointing lead managers to the IPO after it received a nod from HDFC Bank last month to start the listing process,» one of the persons cited earlier said. «It feels the markets are buoyant and this is the right time for the IPO.» HDB stocks are currently fetching ₹1,130-1,140 apiece in the grey market, which would value the NBFC at about ₹90,000 crore ($10.7 billion).
HDB, HDFC Bank, Morgan Stanley and Nomura did not immediately respond to an email seeking comments.
Regulatory Compliance Move
Bank of America Securities declined to comment.
On July 20, the board of HDFC Bank gave in-principle approval to initiate the process of listing HDB Financial Services. The board has authorised a committee of directors to oversee the process.
The listing is to comply with requirements of the Reserve Bank of India (RBI). HDB is in the upper layer of NBFCs, the highest category, which means it needs to be listed by September 2025 under regulatory guidelines.
NBFCs are categorised by their size and systemic
