HDFC Bank shares rise as Board approves HDB Financial IPO; check details

In the early trade, the stock was trading 0.6% higher at ₹1,752.3 apiece on the National Stock Exchange (NSE). Its market capitalisation stands at ₹13,36,767.36 crore.

HDB Financial IPO: Board approves public offer

In a statement on Friday, September 20, the company said that it has given the green light to public offer of equity shares of face value of ₹10 each, "comprising of a fresh issue of equity shares aggregating up to ₹2,500 crore and an offer for sale of equity shares by existing and eligible shareholders of the Company who may offer to tender their equity shares which is subject to approval of the shareholders of the company, market conditions, receipt of applicable approvals, regulatory clearances and other considerations".

Moreover, the company cleared amendments to the articles of association and amendments to the Employee Stock Option Scheme (ESOS) 2014, ESOS 2017 and ESOS 2022 to comply with the regulatory requirements.

Currently, HDFC Bank holds a 94.6% stake in HDB Financial Services, its NBFC (Non-banking financial company) arm.

The company's move to launch an initial public sale comes in response to the Reserve Bank of India's (RBI) mandate, which requires 'upper layer' NBFCs to list on stock exchanges.