The ₹12,500-crore initial public offering (IPO) of HDB Financial Services, a non-banking financial company arm of HDFC Bank, will open for subscription on June 25 and close on June 27.
Ahead of opening of the public issue, G Ramesh, MD & CEO of HDB Financial, told Fortune India about the company’s IPO plan and future growth strategy. “As an organisation our entire focus has been on building value for our customers and our stakeholders,” Ramesh said.
“We continue to invest in our technology, products, and distribution. We believe that India is a large market and will continue to grow, and we will take advantage of that,” he added.
The HDB Financial Services IPO - the largest since Hyundai Motor India’s ₹27,000 crore issue last year and the biggest for the current calendar year - is a combination of fresh issue of 3.38 crore shares worth ₹2,500 crore and offer for sale (OFS) of 13.51 crore shares aggregating to ₹10,000 crore by promoter entity.
HDB Financial intends to use capital raised from fresh equities to augment its Tier-I capital base to meet the company’s future capital requirements including onward lending under any of the its business.
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