MC EXCLUSIVE HDB Financial Services likely to launch Rs 12,500-cr IPO by June-end; valuation pegged at around Rs 62k cr

HDB Financial Services likely to launch Rs 12,500-cr IPO by June-end; valuation pegged at around Rs 62k cr

Banking behemoth HDFC Bank's subsidiary HDB Financial Services is planning to launch its much-anticipated Rs 12,500-crore IPO, India's biggest ever by an NBFC, by June-end, multiple industry sources in the know told Moneycontrol.

"The UDRHP (updated draft red herring prospectus) has been filed and the plan is for the red herring prospectus to be submitted in a few days, followed by the anchor portion on June 24. As of now, the target is to open the issue for public subscription between June 25 to June 27," two persons said.

One of them added that if there were any sudden, adverse events, change in market conditions or unexpected delays, then the above dates may change.

A third person said that HDB Financial Services is targeting a post-money valuation of around $7.2 bn (around Rs 62,000 crore) at the higher end of the price band.

A fourth person confirmed the proposed launch timelines and the targeted valuation of the firm.

The four persons quoted above spoke to Moneycontrol on the condition of anonymity.

An email query to HDFC Bank and HDB Financial Services remained unanswered at the time of publishing this article. The HDB Financial Services IPO comprises a fresh issue of Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by parent HDFC Bank, which holds 94.3 per cent stake. The firm had filed its draft red herring prospectus ( DRHP) for the IPO in October 2024.

On September 7, Moneycontrol was the first to report that HDB Financial Services had engaged at least 4 investment banks and kicked off the mega IPO process .

Earlier, on July 20, 2024, the board of directors of HDFC Bank provided an in-principle approval to initiate the process of listing of HDB Financial Services and formed a committee of directors to undertake various steps in this regard.

The listing is a mandatory requirement with HDB Financial Services being an "Upper Layer" NBFC pursuant to the circular issued by the RBI in October 2022. As per the RBI, all "Upper Layer" NBFCs are required to list within three years of being notified, i.e., September 2025 in this case.

According to the DRHP, the HDB Financial IPO syndicate is a large one of 12 investment banks including JM Financial, BNP Paribas, BofA Securities, Jefferies, Goldman Sachs, HSBC Securities, Nomura, IIFL Securities, Morgan Stanley, Nuvama, Motilal Oswal and UBS. Cyril Amarchand Mangaldas is the company counsel.

The firm plans to use the net fresh issue proceeds for augmentation of its Tier-1 capital base to meet the company's future capital requirements including onward lending.