HDFC Bank to sell stake worth ₹10,000 cr in HDB Financial IPO; total issue size ₹12,500 crore

HDFC Bank, the country’s top private lender, on Saturday, October 19, said it would sell equity shares worth ₹10,000 crore through an offer for sale (OFS) in its subsidiary, HDB Financial Services Ltd, as part of the much-anticipated initial public offering (IPO) of the unit.

Parent HDFC Bank holds a 94.6% stake in HDB Financial Services, which will raise up to ₹12,500 crore via its IPO.

The price and other details of the proposed IPO will be determined in due course, the lender said.

Under the initial share sale, the fresh equity sale will be ₹2,500 crore, taking the total size of the IPO to around ₹12,500 crore. Earlier, HDFC Bank’s board approved taking HDB Financial public.

The IPO is expected to fetch a valuation of roughly around $7–8 billion, with a target listing by December or by the end of the current financial year, according to reports.

HDB Financial Services has engaged four investment banks as advisors for its IPO, namely Jefferies, JM Financial, Morgan Stanley and Nomura, according to a Moneycontrol report.

Incorporated in 2007, HDB Financial Services provides secured and unsecured loans and has more than 1,680 branches across India.

HDB Financial’s listing follows new norms introduced by the country’s central bank in 2022 that required large non-banking financial companies (NBFC) to be listed on stock exchanges by September 2025.

HDFC Bank posted a profit of ₹16,175 crore for the first quarter of FY25, marking a 2% decrease from the ₹16,511.9 crore reported in the previous quarter. The net interest income was 2.6% up in the mentioned quarter.

About 269 companies in India have raised more than $12.57 billion through IPOs so far this year, according to LSEG data, higher than the $7.42 billion raised in all of last year. That has propelled the country’s share in Asia equity capital market deals to a record high.