HDFC Bank to Offload ₹10,000 Cr Stake in Blockbuster ₹12,500 Cr HDB Financial Services IPO

HDFC Bank is planning to sell about ₹10,000 crore worth of its stake in HDB Financial Services through the upcoming Initial Public Offering (IPO) of its subsidiary. Currently, HDFC Bank holds a 94.6% stake in HDB Financial Services. The IPO will include the sale of fresh equity shares worth ₹2,500 crore, bringing the total value of the offering to approximately ₹12,500 crore. HDFC Bank’s board had previously approved taking HDB Financial public, marking the group’s first IPO in six years.

The specific price of the shares and other details regarding the IPO will be decided later. This listing is a significant move for the bank, following the new regulations introduced by the Reserve Bank of India in 2022. These regulations require large non-banking financial companies (NBFCs) to be listed on the stock exchanges by September 2025.

HDB Financial Services is a well-established NBFC that serves both retail and commercial clients, offering a broad range of financial products and services. The company specialises in secured and unsecured lending, asset finance, consumer loans, and loans against property. HDB Financial Services has built a strong reputation as a reliable financial partner for individuals, small businesses, and larger enterprises across India.

The company’s loan book grew by 17% year-on-year in FY23, reaching ₹66,000 crore, driven by strong demand for personal loans, vehicle loans, and small business financing. In the same financial year, HDB Financial Services reported a net profit of ₹1,740 crore.

The funds raised from the IPO are expected to be used to expand the company’s lending portfolio and enhance its digital infrastructure, allowing it to continue meeting the growing demand for financial services in India.