HDB Financial Services Ltd has received regulatory approval from the Securities and Exchange Board of India (SEBI) for its much-anticipated initial public offering (IPO). The company had filed its draft red herring prospectus (DRHP) in October 2023, aiming to raise Rs 12,500 crore through a combination of fresh issue and offer for sale.
The IPO includes a Rs 2,500 crore fresh issue and a Rs 10,000 crore offer for sale by parent company HDFC Bank. This marks one of the largest IPOs by a non-banking lender in India’s history.
As many as six entities including HDB Financial Services and Vikram Solar have received Sebi’s go ahead to raise funds through IPOs. The other firms that received Sebi’s nod are A-One Steels India, Shanti Gold International, Dorf-Ketal Chemicals and Shreeji Shipping Global Ltd.
These six firms, which filed their preliminary IPO papers with Sebi between October 2024 and January 25, 2025 obtained their observations during May 27-30, the update showed.
As for HDB Financial Services, HDFC Bank holds 94.36 per cent stake in HDB Financial Services, a non-banking financial company (NBFC).
The company proposes to utilise the proceeds from the fresh issue to strengthen its Tier-I capital base. This will support future capital needs, including additional lending, to support business growth. Vikram Solar’s IPO is a mix of fresh issue of shares up to Rs 1,500 crore and an offer-for-sale (OFS) of up to 17.45 million equity shares by promoter and promoter group selling shareholders.
Shares of these six firms are proposed to be listed on the BSE and NSE.
(With inputs from PTI)