Top private sector lender HDFC Bank's subsidiary HDB Financial Services will launch it's much anticipated Rs 12,500 crore IPO - India's biggest ever by an NBFC - between June 25 to 27, with the anchor portion reserved for June 24, according to an exchange filing by HDB Financial, shared on June 19.
On June 16, Moneycontrol was the first to report that HDB Financial Services was likely to launch its IPO by end of June, targetting a post-money valuation of around $7.2 billion (around Rs 62,000 crore) at the higher end of the price band. The report had specified June 24 and June 25-27 as the proposed timelines for the anchor book and public subscription.
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 it's 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" NBFC's are required to list within three years of being notified, i.e., September 2025.
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.
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