More Stories

Informist, Thursday, Oct. 31, 2024

MUMBAI – HDB Financial Services Ltd has filed the draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering. The issue comprises fresh equity shares of up to INR 25 billion, and an offer for sale of equity shares of up to INR 100 billion.

In September, the board of the company of HDB Financial Services approved the IPO with a fresh issue and an offer for sale. HDB Financial Services is a subsidiary of HDFC Bank. The bank held a 94.54% stake in the company as of Sept. 30. 

However, in the exchange notification, HDFC Bank said IPO comprises a fresh issue of equity shares aggregating up to INR 25 billion and an offer for sale of equity shares of only INR 10 billion by certain existing shareholders.

The move is in accordance with the Reserve Bank of India's mandatory listing requirement for upper-layer non-banking finance companies. According to the RBI norms, all upper-layer non-bank lenders are required to get listed within three years of being notified.

HDB Financial Services is a diversified retail-focused non-banking financial companies categorised as an Upper Layer NBFC (NBFC-UL) by the RBI. The company's products are offered through three business verticals--Enterprise Lending, Asset Finance and Consumer Finance. 

The company proposes to utilise the net proceeds from the fresh issue towards augmenting its tier–I capital base to meet future capital requirements including onward lending, arising out of the growth of business. 

HDB Financial Services has reported a net profit of INR 24.24 billion in the financial year 2023-24 (Apr-Mar), and INR 11.43 billion in Apr-Sep. The Company's outstanding loan book stood at INR 952 billon as of Sept. 30 and earnings per equity share in FY24 was INR 31.08.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Richard Fargose

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.