The board of HDFC Bank has given its in-principle approval to take its financial services unit HDB Financial Services public through an initial public offering (IPO).
Under the IPO, the fresh equity sale will be Rs 2,500 crore. There will be an offer-for-sale component, where interested existing and eligible shareholders of the company may offer to tender their equity shares.
HDB Financial Services is a leading non-banking financial company (NBFC), primarily catering to the retail and commercial segments, offering a wide range of financial products and services.
It specialises in secured and unsecured lending, asset finance, consumer loans, and loan against property. HDBFS has established itself as a trusted financial partner for individuals, small businesses, and enterprises across India.
The NBFC reported a 17% year-on-year growth in its loan book for FY23 at Rs 66,000 crore. The growth was driven by robust demand for personal loans, vehicle loans, and small business financing. Meanwhile, the company’s net profit for FY23 stood at Rs 1,740 crore.
