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HDFC Bank unit HDB Financial's ₹12,500 crore IPO: All You Need To KnowThe HDB Financial IPO comprises a fresh issue of ₹2,500 crore and an offer for sale (OFS) of ₹10,000 crore by parent HDFC Bank, which currently holds a 94.3% stake in the company.By Ritu Singh    | Meghna Sen   June 4, 2025, 11:07:33 AM IST (Updated)2 Min ReadCapital markets regulator Securities and Exchange Board of India (SEBI) has approved the ₹12,500 crore initial public offering (IPO) of HDB Financial Services, a subsidiary of banking giant HDFC Bank.

The IPO comprises a fresh issue of ₹2,500 crore and an offer for sale (OFS) of ₹10,000 crore by parent HDFC Bank, which currently holds a 94.3% stake in the company.

CNBC-TV18 had earlier reported that SEBI was expected to clear the IPO by May 27.

The listing is a regulatory requirement, as HDB Financial Services falls under the "Upper Layer" category of Non-Banking Financial Companies (NBFCs) pursuant to the Reserve Bank of India’s (RBI) October 2022 circular.

As per RBI norms, all NBFCs classified in this category must be listed within three years of notification, by September this year.

Additionally, if the RBI's 2024 draft circular on the overlap of similar businesses is implemented, HDFC Bank may be required to either reduce its stake in HDB Financial to 20%, merge the businesses, or segregate their offerings.

Utilisation of IPO proceeds

- Strengthening Tier-1 capital

- Meeting future capital requirements, including onward lending

- Complying with capital adequacy regulations

HDB Financial Services: Key strengths

- Strong backing from HDFC Bank

- Established presence in the granular retail segment

- Robust capital structure and diversified funding profile

HDB Financial Services: Key risks

- Moderate asset quality

- Exposure to unsecured and riskier segments

Despite the public listing, HDB Financial will continue to remain a subsidiary of HDFC Bank. The company operates through 1,680 branches and has a diversified asset under management (AUM) mix, with a strong focus on retail and SME lending. Its largest loan segments include vehicle finance and loans against property.

Shares of HDFC Bank Ltd. are trading with gains of 0.60% on Wednesday at ₹1,936.10. The stock has risen nearly 9% so far in 2025.Continue ReadingFirst Published: Jun 4, 2025 11:01 AM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsHDB FinancialIPO