HDB Financial Services, the non-banking finance subsidiary of HDFC Bank, is making significant strides towards launching its Initial Public Offering (IPO). The company has begun discussions with several prominent global investment banks to finalize its advisory team, according to a report from The Economic Times.

 Engaging with Leading Financial Institutions 

The talks currently involve major players like Bank of America Securities, Morgan Stanley, and Nomura. While these institutions are being considered for advisory roles, additional banks may be brought into the fold as the process progresses over the coming weeks. Although these discussions are in the early stages, insiders expect a definitive decision to be reached within the next few weeks.

 Potential IPO Details and Market Valuation 

The IPO is anticipated to raise approximately Rs 10,000 crore ($1.2 billion), with HDFC Bank expected to reduce its stake in HDB Financial Services by about 10%. In the grey market, HDB's stock is trading at Rs 1,130-1,140 per share, suggesting a valuation of around Rs 90,000 crore ($10.7 billion) for the company.

 Board Approval and Regulatory Compliance 

The process gained momentum on July 20, when HDFC Bank’s board granted in-principle approval for HDB's listing. A committee of directors has been appointed to supervise the IPO process, which is crucial for meeting the Reserve Bank of India’s (RBI) regulatory guidelines. HDB, classified as an upper-layer NBFC, is required by RBI regulations to go public by September 2025.

 Readiness for Public Listing 

HDB Financial Services had already indicated its readiness for the IPO earlier this year. In June, Chief Credit Officer Rohit Patwardhan confirmed that the company had completed all necessary compliance and documentation, with the final go-ahead pending from its parent company, HDFC Bank. The timing of the IPO is considered favorable given the current buoyant market conditions.