HDFC Bank Approves ₹2,500 Crore IPO for HDB Financial Services: What Investors Need to Know

HDFC Bank’s board has given initial approval for its financial services arm, HDB Financial Services, to go public through an initial public offering (IPO).

The IPO will include a fresh equity sale worth Rs 2,500 crore. Additionally, there will be an offer-for-sale section, where current and eligible shareholders of the company can sell their shares.

HDB Financial Services is a top non-banking financial company (NBFC) in India. It mainly serves the retail and commercial sectors, offering various financial products and services. These include both secured and unsecured loans, asset finance, consumer loans, and loans against property. HDB Financial Services is a trusted financial partner for individuals, small businesses, and enterprises throughout India.

In FY23, the NBFC saw its loan book grow by 17% year-on-year, reaching Rs 66,000 crore. This growth was driven by strong demand for personal loans, vehicle loans, and small business financing. HDB Financial Services also reported a net profit of Rs 1,740 crore for FY23.