HDB Financial Services IPO: HDFC Bank's NBFC Arm Targets ₹12,500 Crore; Here’s WhyHDB Financial Services IPO: HDFC Bank's NBFC Arm Targets ₹12,500 Crore; Here’s Why

HDB Financial Services IPO: HDB Financial Services, the NBFC subsidiary of HDFC Bank, has filed for an initial public offering (IPO) worth ₹12,500 crore. This includes a fresh issue of ₹2,500 crore and an offer for sale (OFS) of ₹10,000 crore.

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HDFC Bank holds a 94.64% stake in HDB Financial Services, which reported a net worth of approximately ₹13,300 crore for the June quarter. The IPO aims to comply with the RBI’s mandate for ‘upper layer’ NBFCs to list on stock exchanges.

Upper layer NBFCs refer to a new category of non-banking financial companies identified by the Reserve Bank of India (RBI) for their systemic significance. This classification is part of the RBI’s scale-based regulation, effective from October 1, 2022.

These NBFCs undergo a parametric analysis based on specific quantitative and qualitative criteria. Entities qualifying for the upper layer will face stricter regulations and supervision, with the top ten NBFCs by asset size consistently placed in this category.

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Book-Running Managers for HDB Financial Services IPO

The lead book-running managers for HDB Financial Services’ IPO include JM Financial, BNP Paribas, BofA Securities, Goldman Sachs, HSBC, IIFL Securities, Jefferies, Morgan Stanley, Motilal Oswal, Nomura, Nuvama Wealth Management, and UBS Securities.