HDB Financial Services Fixes Price Band for Rs 12,500 Crore IPO
HDB Financial Services, a subsidiary of HDFC Bank, has set a price band of Rs 700-740 per share for its maiden public issue, which is valued at nearly Rs 61,400 crore at the upper end. The IPO, which is a combination of a fresh issue of equity shares worth Rs 2,500 crore and an Offer For Sale (OFS) of Rs 10,000 crore by promoter HDFC Bank, aims to strengthen the company's Tier-I capital base. The proceeds from the fresh issue will support future capital needs, including additional lending, to drive business growth. The IPO is scheduled to open for subscription on June 25 and conclude on June 27.
Key Takeaways:
- HDB Financial Services' IPO price band is set at Rs 700-740 per share, with a total issue size of Rs 12,500 crore.
- The company proposes to utilize Rs 2,500 crore from the fresh issue to strengthen its Tier-I capital base, supporting future capital needs and business growth.
- Half of the issue size has been reserved for qualified institutional buyers, and the IPO will be open for subscription from June 25 to June 27.
- HDFC Bank holds a 94.36% stake in HDB Financial Services, and the company will continue to be a subsidiary of the bank after the proposed IPO.
- The decision to list HDB Financial Services follows the RBI's mandate in October 2022, requiring NBFCs in the upper layer to list on the stock exchanges within three years.
- HDFC Bank's board approved a share sale worth Rs 12,500 crore last year, comprising Rs 10,000 crore OFS related to HDB Financial Services.
Statistics:
- Total issue size: Rs 12,500 crore
- Fresh issue size: Rs 2,500 crore
- OFS size: Rs 10,000 crore
- Price band: Rs 700-740 per share
- Company valuation at upper end of price band: nearly Rs 61,400 crore
- Number of qualified institutional buyers: half of the issue size (Rs 6,250 crore)
Sources:
- "HDB Financial Services fixes price band at Rs 700-740 for Rs 12,500 crore IPO." (FPJ News Service) Mumbai: HDB Financial Services, 12 2025.