Roadshows for HDB Financial’s IPO underway
8 Jan 2025
HDB Financial’s Rs 12,500 crore IPO, valued at $10-12 billion, faces regulatory hurdles but targets March 2025 listing.
HDB Financial’s Rs 12,500 crore IPO, valued at $10-12 billion, faces regulatory hurdles but targets March 2025 listing.
HDB Financial Services
Expert Analysis
HDB Financial’s IPO Roadshows Begin, Targeting Rs 12,500 Crore.
Expert Analysis:
Global Roadshows: HDB Financial Services has launched roadshows in the UK, US, Singapore, and Hong Kong for its IPO.
Roadshow and Investor Engagement: Roadshows began in late December, with HDB Financial engaging large foreign funds, including sovereign and pension funds, to gauge investment interest. Emails sent to HDFC Bank and HDB Financial remained unanswered.
Valuation Range: Valuation is pegged between $10-12 billion (Rs 85,000-1,00,000 crore).
Price Discovery and Market Cap: The final price discovery for HDB Financial’s IPO depends on investor response. Unlisted shares trade at Rs 1,225, valuing the company at Rs 97,154 crore.
IPO Timeline: Roadshows are ongoing, and HDFC Bank plans to launch the IPO within 2-3 weeks of receiving final comments from SEBI, aiming to complete the IPO by the end of the fiscal year. The draft red herring prospectus was filed on November 5, with plans to list by March 2025.
IPO Structure and Stake: The IPO includes a Rs 10,000 crore offer for sale and Rs 2,500 crore fresh issuance, representing just over 10% in the NBFC arm While HDFC Bank holds 94.36% in HDB Financial.
Impact on Valuations: Macquarie’s January 7 report highlighted that the RBI’s draft regulations on business overlap create an overhang, potentially affecting the valuations of HDB Financial and HDFC Bank.