HDB Financial Services IPO sets price band of ₹700-₹740 per share; check lot size and key details

The initial public offer will open for public subscription on June 25 and conclude on June 27. The bidding for anchor investors would take place on June 24.

A lot consists of 20 shares, needing an investment of ₹14,800 at the upper end of the price band.

On Thursday, non-banking financial company (NBFC) HDB Financial Services filed the red herring prospectus (RHP) with the Registrar of Companies (RoC), Gujarat, Dadra and Nagar Haveli at Ahmedabad, HDFC Bank said in a regulatory filing.

The offer has reserved a portion for the eligible employees of the company as well as eligible HDFC Bank shareholders.

The IPO is a mix of a fresh issuance of equity shares valued at ₹2,500 crore and an offer for sale of ₹10,000 crore by promoter HDFC Bank.

At present, HDFC Bank owns a 94.36% stake in HDB Financial Services.

The total fresh issue proceeds will be used to strengthen the company's Tier-I capital base to support future capital requirements.

HDFC Bank had approved the share sale of its NBFC arm last year. Following the proposed IPO, HDB Financial Services Ltd will continue to be a subsidiary of the bank.

The issue's book running leader managers are BoFA Securities India, JM Financial, BNP Paribas, HSBC Securities & Capital Markets, Jefferies India, Goldman Sachs (India) Securities, IIFL Capital Services, Nomura Financial Advisory And Securities (India), Motilal Oswal Investment Advisors, Nuvama Wealth Management, UBS Securities India, and Morgan Stanley India Company.

The equity shares will list on the National Stock Exchange (NSE) and the BSE on July 2.