365Telugu.com online news, November 2nd,2024:HDB Financial Services Limited, a subsidiary of HDFC Bank and one of India’s prominent retail-focused non-banking financial companies (NBFCs), has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for a proposed Initial Public Offering (IPO).
As of September 30, 2024, HDB Financial Services has served 17.5 million customers, marking an impressive growth at a CAGR of 28.22% since March 31, 2022, primarily catering to low- to middle-income households with minimal credit history.
With a strong omni-channel network, the company offers a wide range of lending products through its three verticals: Enterprise Lending, Asset Finance, and Consumer Finance.The IPO will aim to raise up to ₹12,500 crore, consisting of a fresh issue of shares worth ₹2,500 crore and an offer for sale (OFS) of ₹10,000 crore by HDFC Bank, the promoter.
The offer includes a reservation for eligible employees and HDFC Bank shareholders.The company may explore a Pre-IPO placement to raise funds prior to the public offering, in consultation with the Book Running Lead Managers (BRLMs). Proceeds from the fresh issue will strengthen HDB Financial Services’ Tier-I Capital to support future growth and lending needs.
Leading financial institutions, including JM Financial, BNP Paribas, BofA Securities, Goldman Sachs, HSBC, IIFL Securities, and UBS Securities, are acting as BRLMs for the IPO.