Listed parents to flex arms on IPO Street in 2025
HDFC Bank, Hero MotoCorp, Reliance Industries, Manappuram Finance, Muthoot Finance, Brigade Enterprises, Canara Bank and Greaves Cotton among others planning listings, with more to follow, bankers said.
Subsidiary public issues enable independent capital raising, benchmark readiness and cash generation for parents via offers for sale, aiding deleveraging, capital expenditure or dividend payouts. Investors gain access to focused, growth-driven, pure-play businesses, according to bankers.
On Monday, Greaves Cotton's board approved an IPO for its subsidiary, Greaves Electric Mobility. Earlier, on November 1, HDB Financial Services, HDFC Bank's NBFC arm, filed a draft red herring prospectus (DRHP) for a ₹12,500 crore IPO — India's largest NBFC offering.
While the overall IPO markets are open and offer a good platform for unlocking of value, the IPOs of listed subsidiaries are being executed for various strategic factors, each having its own drivers, according to bankers.
«First, as these subsidiaries grow and mature, they need to be independent and raise their financial capital and second, the scale of the subsidiaries has reached a level where they are benchmarked to best-in-class listed peers and hence ready to be listed themselves,» said Amitabh Malhotra, head of global banking, HSBC India.
Stock Trading
A2Z of Stock Trading — Online Stock Trading Course
By — elearnmarkets, Financial Education by StockEdge
Stock Trading
Heikin Ashi Trading Tactics: Master the Art of Trading
By — Dinesh Nagpal, Full Time Trader,
