Business: Another IPO is going to come in the market from the country's largest private bank HDFC Bank. The board of HDFC Bank's non-banking subsidiary HDB Financial Services has approved the company to bring an IPO of Rs 2,500 crore. This IPO can come in the market by December this year or by the last quarter of the financial year. 

Fresh shares worth Rs 2500 crore will be issued in IPO 

According to a Bloomberg report, in this IPO of HDB Financial Services, along with issuing fresh shares worth Rs 2500 crore, existing investors will also get a chance to reduce their stake through an offer for sale. There were speculations about this IPO for many months. HDFC Bank has a 94.64 percent stake in this company. According to the report, HDB Financial Services is currently busy appointing bankers for this IPO. Currently, foreign banks like Morgan Stanley, Bank of America and Nomura and companies like ICICI Securities, Axis Capital and IIFL are leading in this race. 

HDFC Bank may sell 10 to 15 percent stake

HDFC Bank is expected to get a valuation of Rs 78 thousand crore to Rs 87 thousand crore for HDB Finance. This is about 5 times the estimated price to book value. The bank can sell about 10 to 15 percent of its stake through this IPO. It hopes that Rs 7,800 to 8,700 crore can be raised from this. This will give the company sufficient capital.

Confidence came from the strong listing of Bajaj Housing Finance 

The decision to list HDB Financial Services has been taken due to the order given by the Reserve Bank of India (RBI) in October 2022. Under this, RBI had ordered all Upper Layer NBFCs to be listed within 3 years. The approval of the IPO has come soon after the bumper listing of Bajaj Housing Finance. With this listing, the market cap of the company has crossed Rs 1.4 lakh crore.