HDB Financial Services plans mega IPO – A new milestone for India's financial market

India's HDB Financial Services, a subsidiary of HDFC Bank in the non-banking financial sector, has received the green light for an initial public offering (IPO) amounting to up to 125 billion rupees. This move follows the announcement by the parent company earlier this month. HDFC Bank, which holds a significant 94.6% stake in HDB Financial, plans to divest shares worth up to 100 billion rupees. In addition, HDB Financial will issue new shares amounting to 25 billion rupees to meet capital requirements and expand its lending business. The approval of the IPO by HDFC Bank marks the group's first public offering in six years. This occurs against the backdrop of a regulation by financial authorities mandating larger non-banking financial companies to list, based on size, activity, and risk assessment, with a deadline of September 2025. Bajaj Housing Finance already ventured into the IPO market in September, with one of the most successful public offerings of the year in a booming Indian IPO market. According to LSEG data, about 270 companies in India have raised a total of over $12.57 billion through IPOs this year, significantly more than the $7.42 billion from the previous year. Founded in 2007, HDB Financial Services offers both secured and unsecured loans and operates over 1,680 branches across India. The lead banks for the IPO include Jefferies, Goldman Sachs, and BofA Securities.