The Indian IPO market is gearing up for one of the largest upcoming initial public offerings this year. The new HDB IPO will be the first issue by the merged entity of HDFC and HDFC Bank and relates to their subsidiary HDB Financial Services.
About HDFC Bank and HDB
HDFC Bank Ltd. is an Indian banking and financial services company. It has been in the market for decades and is considered a leader in the industry. Since August 2023, it took control of its parent company HDFC and since then it holds the title of India’s largest private sector bank by assets and the world’s sixth largest bank by market capitalization.
HDFC Bank is publicly traded on the NSE and BSE and is a blue-chip stock. Its market capitalisation is estimated at INR 11.10 trillion. However, we will take a look at one of HDFC Bank’s subsidiaries, namely HDB Financial Services (HDB). This non-banking finance company was established in 2007 and offers a wide range of secured and unsecured loans to its clients for various purposes. HDFC Bank has a majority ownership interest of approximately 95% in HDB.
What do we know about the HDB IPO?
The listing of the HDB Financial Services subsidiary could start in the last quarter of 2024 or the first quarter of 2025, but not later than September 2025. The lender’s CFO Srinivasan Vaidyanathan even said that the IPO process would start in the coming months. The first step will be to submit the required documents to the Securities and Exchange Board of India (SEBI) and get its approval for the IPO.
According to market reports, the IPO value of the company is expected to be in the range of USD 9 to 12 billion (INR 750 to INR 1,000 billion) depending on market conditions.
