HDFC Bank board gives nod to initiate listing of HDB Financial Services via IPO route
India’s biggest private lender, HDFC Bank Ltd, announced on Saturday, July 20, that its Board of Directors has approved in principle to initiate the public listing of its subsidiary HDB Financial Services (HDBFS) through the initial public offering (IPO) process.
HDFC Bank’s decision to publicly list its subsidiary HDB Financial Services comes after the Reserve Bank of India’s (RBI) decision to mandate Non-Banking Financial Companies (NBFCs) belonging to the “upper layer” of the system to publicly list themselves in the exchanges. RBI released the mandate circular in October 2022.
The Economic Times reported in March that HDFC Bank has initiated plans for their HDB Financial Services IPO listing. The NBFC lender is likely to get a valuation in the range of $9 billion to $12 billion for the IPO round considering the market conditions, said an anonymous investment banker, as per the report in March 2024.
