HDFC Bank promoted, HDB Financial Services Limited files DRHP with SEBI for an IPO

HDFC Bank promoted, HDB Financial Services Limited one of the leading, diversified retail-focused non-banking financial companies (“NBFCs”) in India in terms of Total Gross Loan book size, (Source: CRISIL Report) has filed Draft Red Herring Prospectus (DRHP) with SEBI for an Initial Public Offering (IPO).

HDB Financial Services Limited offer a large portfolio of lending products that cater to a growing and diverse customer base through a wide omni-channel distribution network. The lending products are offered through three business verticals: Enterprise Lending, Asset Finance and Consumer Finance. The company is one of India’s largest and fastest growing customer franchises, according to the CRISIL Report, and has served 17.5 million customers as at September 30, 2024, which grew at a CAGR of 28.22% between March 31, 2022 and September 30, 2024. Company primarily cater to underserved and underbanked customers in low to middle-income households with minimal or no credit history.

The Public Offer aggregating up to ₹ 12,500 crore comprises of a fresh issue of equity shares aggregating up to ₹ 2,500 crores and an offer for sale (OFS) aggregating up to ₹ 10,000 crores by HDFC Bank Limited the “Promoter Selling Shareholder” with face value of ₹10 each equity share.

The Public Offer Includes a reservation of Equity Shares for subscription by Eligible Employees (“Employee Reservation Portion”) and a reservation Equity Shares of Face Value of ₹10 each for subscription by eligible HDFC Bank shareholders (“HDFC bank shareholder reservation portion”).

The company in consultation with the BRLMs may consider an Pre-IPO placement, prior to filing the Red Herring Prospectus (“PRE-IPO PLACEMENT”). The Pre-IPO placement, if undertaken, will be at a price to be decided by the company, in consultation with the BRLMs. If the pre-IPO placement is completed, the amount raised pursuant to the pre-IPO placement will be reduced from the fresh issue, subject to compliance with rule 19(2)(b) of the SCRR.

HDB Financial Services Limited proposes to utilize the net proceeds from the fresh issue towards augmenting the company’s Tier – I Capital base to meet the company’s future capital requirements including onward lending, arising out of the growth of the business.

JM Financial Limited, BNP Paribas, BofA Securities India Limited, Goldman Sachs (India) Securities Private Limited, HSBC Securities and Capital Markets (India) Private Limited, IIFL Securities Limited, Jefferies India Private Limited, Morgan Stanley India Company Private Limited, Motilal Oswal Investment Advisors Limited, Nomura Financial Advisory and Securities (India) Private Limited, Nuvama Wealth Management Limited and UBS Securities India Private Limited are the Book Running Lead Managers to the issue.