HDFC Bank board approves Rs 12,500-crore share sale of its subsidiary HDB Financial

New Delhi: HDFC Bank on Saturday said its board has approved share sale worth Rs 12,500 crore comprising Rs 10,000 crore offer for sale (OFS) related to its subsidiary HDB Financial Services.

The initial public offering (IPO) will be for such number of equity shares of face value of Rs 10 each of HDB Financial Services aggregating up to Rs 12,500 crore comprising a fresh issue of Rs 2,500 crore and an OFS aggregating up to Rs 10,000 crore, HDFC Bank said in a regulatory filing.

The price and other details of the proposed IPO will be determined in due course by the competent body, it said.

After the proposed IPO, HDB Financial Services will continue to be a subsidiary of the bank, in compliance with the provisions of the applicable regulations, it added.

HDFC Bank holds a 94.64 per cent stake in HDB Financial Services, a non-banking financial company (NBFC) arm of the bank.

HDB Financial Services closed the June quarter with a net worth of about Rs 13,300 crore.

The decision to list HDB Financial Services follows the Reserve Bank of India's mandate in October 2022, requiring NBFCs in the upper layer to list on the stock exchanges.