HDFC Bank Climbs 1% as Board Greenlights HDB Financial's ₹2,500 Cr IPO!HDFC Bank Climbs 1% as Board Greenlights HDB Financial's ₹2,500 Cr IPO!

HDFC Bank’s shares saw a near 1% increase to Rs 1,754 after its board approved the IPO of its subsidiary, HDB Financial Services. The IPO comprises Rs 2,500 crore in fresh equity and an offer-for-sale, showing robust investor interest.

The proposed IPO could value HDB Financial Services at around $7–8 billion, with plans for a listing by December or year-end. HDFC Bank owns 94.64% of the non-banking finance entity and is selecting bankers, including major foreign and domestic institutions.

Morgan Stanley, Bank of America, and Nomura, along with ICICI Securities, Axis Capital, and IIFL, have been considered for managing the IPO. This follows regulatory requirements for HDB Financial Services, which falls under the RBI’s “Upper Layer” NBFC category.

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The IPO initiative follows the successful public listing of Bajaj Housing Finance, whose market cap exceeded Rs 1.4 lakh crore. HDB Financial Services focuses on retail and commercial lending, including a variety of financial services.

HDB reported a 17% increase in its loan book to Rs 66,000 crore in FY23, driven by high demand in personal, vehicle, and small business loans. This growth indicates a strong market presence and operational success.

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Concurrently, HDFC Bank disclosed a Q1 FY25 net profit of Rs 16,175 crore, slightly down from Rs 16,511.9 crore the previous quarter, though net interest income grew by 2.6%. This financial update underscores the bank’s steady performance despite market fluctuations.