New Delhi [India], October 20 (ANI): HDB Financial Services (HDBFS), a subsidiary of HDFC Bank, is set to launch its much-anticipated Initial Public Offering (IPO), the company confirmed in a filing.
The Board of Directors of HDFC Bank has approved an Offer for Sale (OFS) of equity shares in HDBFS, amounting to Rs 10,000 crore. This OFS forms part of the overall IPO plan, with a total size of up to Rs 12,500 crore.
“The IPO will comprise equity shares of face value Rs 10 each, aggregating up to Rs 12,500 crore. This includes a fresh issue of equity shares worth Rs 2,500 crore and an OFS worth Rs 10,000 crore,” the company stated in an official release on Saturday.
The IPO will therefore consist of two components: a fresh issue of equity shares totalling Rs 2,500 crore and the OFS amounting to Rs 10,000 crore. The equity shares will have a face value of Rs 10 each.
Further details, including the exact pricing, will be decided later by the relevant authorities.
This IPO marks a significant milestone for HDBFS as it seeks to raise capital from the equity market. HDFC Bank’s approval for the OFS indicates its intention to reduce some of its holdings in HDBFS while retaining control. Even after the IPO, HDBFS will remain a subsidiary of HDFC Bank, ensuring compliance with regulatory requirements.
The strong backing of HDFC Bank and HDBFS’s established market presence are expected to generate substantial interest from investors. (ANI)
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