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HDB Financial Services (HDBFS), a subsidiary of HDFC Bank, will come out with a Rs 12,500 crore public issue, the bank said in an exchange filing. HDBFS public offer is set to be the biggest issue from a financial services company so far.
HDFC Bank will offload about Rs 10,000 crore worth stake in the proposed IPO. “The board of directors of the bank at its meeting held on October 19 considered and approved the Offer for Sale of such number of equity shares of face value of 10 each of HDBFS aggregating up to Rs 10,000 crore,” the bank said in the filing.
HDFC Bank holds 94.6 per cent stake in HDBFS.
Accordingly, the IPO will be at a face value of Rs 10 each of HDBFS aggregating up to Rs 12,500 crore comprising of a fresh issue of HDBFS shares aggregating up to Rs 2,500 crore.
“The price and other details of the proposed IPO will be determined in due course by the competent body. Post the proposed IPO, HDBFS would continue to be a subsidiary of the bank, in compliance with the provisions of the applicable regulations,” the bank said.
The Rs 6,560-crore IPO of Bajaj Housing Finance in September this year received a huge investor response with 88.94 lakh applications from investors worth Rs. 3.24 lakh crore, the highest amount received for any IPO at the upper end of the price band.
The Rs 27,870 crore mega IPO of Hyundai Motor India Ltd (HMIL) closed on October 17 with an oversubscription of 237 per cent, or 2.4 times.
