HDB Financial Services IPO: HDFC Bank Approves ₹2,500 Crore Fundraising Plan September 21, 2024 MSME Sampark IPO News 0 HDB Financial Services, the non-banking financial subsidiary of HDFC Bank, India’s largest private lender, has received board approval for an Initial Public Offering (IPO) to raise ₹2,500 crore via a fresh issue of equity shares and an offer for sale (OFS) by existing shareholders. This move marks the first public float by the HDFC Group in six years, with the IPO aligning with regulatory requirements set by the Reserve Bank of India (RBI). The OFS will enable eligible shareholders to tender their equity shares in HDB Financial Services, subject to market conditions and necessary regulatory clearances. The IPO proceeds will be utilized for corporate growth, including debt repayment and operational expansion. The RBI had earlier directed non-banking financial companies (NBFCs) in the “upper layer” of the system to go public, a mandate issued in October 2022, leading HDFC Bank to provide an in-principle approval for the HDB Financial Services listing process in July 2024. HDFC Bank currently holds a 94.6% stake in HDB Financial Services. In addition to approving the IPO, the bank’s board has made necessary amendments to the company’s articles of association and employee stock option schemes to meet regulatory requirements. Recently, HDFC Bank declined a proposal from Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank, to purchase a 20% stake in HDB Financial Services. This decision came after MUFG expressed interest in expanding its stake in the Indian NBFC. HDFC Bank has faced mixed financial performance recently. In Q1 FY25, it reported a 2% decline in net profit, recording ₹16,175 crore compared to ₹16,511.9 crore in the same quarter the previous year. However, the bank saw a slight increase in net interest income (NII), which rose 2.6% to ₹29,837 crore. Disclaimer: The information provided in this article is based on updates and reports gathered from various internet sources. Every effort has been made to ensure accuracy and reliability. We encourage readers to verify the details independently. Popular Articles Msme News Government Extends Interest Equalisation Scheme for MSME Exporters Until December 2024 Msme News MSMEs Encouraged to Apply for ZED Certification: A Guide to the Process Msme News Akme Fintrade Partners With MAS Financial for Streamlined MSME Financing Msme News SBI to Shift to Cash-Flow Based Lending for MSME Loans Up to ₹5 Crore: Chairman Setty Msme News Government Bridges Credit Gap for MSMEs in Recent Years, Says MSME Development Commissioner Msme News FM Nirmala Sitharaman Announces GST Reduction, A Major Relief for MSMEs Msme News MSME Meet for Jalpaiguri and Alipurduar to Boost Investments in Dooars IPO News Hero Motors Withdraws Rs 900 Crore IPO Plans Msme News MSME NPA Levels Expected to Rise in Next Six Months: FICCI-IBA Bankers’ Survey Msme News Angel Tax Abolition, Boost For MSMEs, and More: How Modi Govt 3.0 is Striving for Ease of Doing Business
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