HDFC Bank Share Price Rises After SEBI Approves HDB Financial Services IPO

Market Performance

HDFC Bank's share price gained 0.45% early on Wednesday, reaching ₹1,934.00 on the BSE. The uptick followed SEBI's approval for its subsidiary, HDB Financial Services, to launch an initial public offering (IPO).

• 1-month performance: Flat
• 3-month gain: Over 12%
• Year-to-date (YTD) rise: 8%
• 1-year return: 30%
• 5-year rally: 92%

By late morning, the stock was trading 0.10% higher at ₹1,927.20.

Key Development: SEBI Nod for HDB Financial IPO

The Securities and Exchange Board of India has given the green light to HDB Financial Services' ₹12,500 Crore IPO. This marks the first public offering from the HDFC Group in seven years.

IPO Breakdown

• Fresh Issue: ₹2,500 Crore (to strengthen Tier-I capital)
• Offer for Sale (OFS): ₹10,000 Crore (by HDFC Bank)

HDFC Bank currently holds a 94.36% stake in HDB Financial Services, a non-banking financial company (NBFC).

Why This IPO Matters

The IPO aligns with the RBI's 2022 mandate, requiring large NBFCs to list on stock exchanges by September 2025.

HDB Financial's Recent Financials (March 2025)

• Net Profit: ₹530 Crore
• Net Revenue: ₹2,620 Crore
• Total Loan Book: ₹1.07 lakh Crore

Summary

• HDFC Bank shares rose after the Securities and Exchange Board of India (SEBI) approved HDB Financial's ₹12,500 Crore initial public offering (IPO).
• The IPO includes a ₹2,500 Crore fresh issue and a ₹10,000 Crore offer for sale (OFS).
• HDFC Bank owns a 94.36% stake in the NBFC subsidiary.
• The stock has delivered 30% returns over the past year and 92% returns over the past five years.