HDB Financial Services, part of HDFC Bank, has received approval from its board for an initial public offering (IPO) of equity shares. HDB Financial IPO will include a new issue of shares worth ₹2,500 crore and a sale of shares by existing shareholders, as stated by HDFC Bank in a filing.
The sale will be carried out by current shareholders who wish to sell their shares. This is subject to getting approval from the shareholders, market conditions, and necessary regulatory approvals.
The board of directors has also approved changes to the company’s articles of association and its Employee Stock Option Schemes from 2014, 2017, and 2022 to meet regulatory requirements. Currently, HDFC Bank holds a 94.6% stake in its non-banking financial subsidiary.
The IPO is the HDFC group’s first public offering in 6 years. On July 20, HDFC Bank announced that its board approved the start of the listing process for HDB Financial Services. This decision follows a requirement from the Reserve Bank of India (RBI) for certain non-banking financial companies (NBFCs) to go public, which was issued in October 2022. Recently, HDFC Bank turned down a proposal from Mitsubishi UFJ Financial Group (MUFG), a Japanese bank, to buy a 20% stake in HDB Financial Services, according to a report.
In Q1 FY25, HDFC Bank reported a 2% decrease in net profit, falling to ₹16,175 crore from ₹16,511.9 crore in the same quarter last year. The net interest income (NII), which is the difference between interest earned and interest paid, improved by 2.6% from the previous quarter, rising to ₹29,837 crore from ₹29,078 crore in Q4 FY24.
In the last 5 days, HDFC Bank has given 5.14%, 7.94% in the last 1 month, 23.06% in the last 6 months and 14.69% in the last 1 year.
HDB Financial Services is a top non-banking financial company that mainly serves retail and commercial customers. It offers financial products and services, such as secured and unsecured loans, asset financing, consumer loans, and loans against property.
HDFC Bank Limited, based in Mumbai, is an Indian banking and financial services company. As of May 2024, it is the largest private sector bank in India by assets and the tenth-largest bank in the world by market capitalisation.
On September 23, 2024, the share price of HDFC Bank Limited opened at ₹1,749.00, touching the day’s high at ₹1,759.20, as of 10:51 AM on the NSE.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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