HDB Financial Services, the non-banking finance arm of HDFC Bank, is gearing up for an initial public offering (IPO) and is talking to several global investment banks to pick advisers, The Economic Times has reported.
Talks are on with Bank of America Securities, Morgan Stanley and Nomura to shortlist advisers but more banks may join in in the coming weeks, the report cited sources as saying.
While the talks are still in the preliminary stages, a final decision is expected within the next few weeks. The IPO is likely to raise approximately Rs 10,000 crore ($1.2 billion), with HDFC Bank diluting its stake by nearly 10 percent.
"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," the report quoted a source as saying. "It feels the markets are buoyant and this is the right time for the IPO."
Moneycontrol couldn’t verify the report independently.
The NBC stock is fetching Rs 1,130-1,140 apiece in the grey market, which would value the company at about Rs 90,000 crore ($10.7 billion), the report said.
On July 20, HDFC Bank’s board gave in-principle approval to start the listing process for HDB. A committee of directors has been authorised to oversee the process, which is necessary to meet Reserve Bank of India (RBI) requirements, the report added.
As an upper-layer NBFC, HDB must list by September 2025 under regulatory guidelines. In June, HDB expressed readiness for an IPO, with Chief Credit Officer Rohit Patwardhan saying the company is prepared from a compliance and documentation standpoint, awaiting final decisions from the parent company, the report said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
