HDFC Bank’s board has given the green light for a major fundraising initiative by its subsidiary, HDB Financial Services. The company plans to raise ₹12,500 crore through an initial public offering (IPO). This move has sparked excitement in the financial markets, with HDFC Bank’s stock price climbing 3% on the news.
The IPO will include fresh equity shares worth ₹2,500 crore. Additionally, HDFC Bank, the parent company, will offer shares worth ₹10,000 crore for sale. This decision comes as HDB Financial Services prepares to meet new regulatory requirements. The Reserve Bank of India introduced these rules in 2022 for large non-banking financial companies (NBFCs).
Investors responded positively to the announcement. HDFC Bank’s shares opened higher for the second day in a row. They reached ₹1,720.05, up 2.3% from the previous closing price on the Bombay Stock Exchange (BSE). During early trading, the bank’s stock climbed even further, gaining 3.2% to reach ₹1,735.75. This surge boosted HDFC Bank’s market capitalization to ₹13.3 lakh crore. The stock has shown impressive growth over the past year. It touched a 52-week high of ₹1,791.90 on July 3, 2024, marking a 27% increase from its 52-week low of ₹1,363.45 on February 14, 2024.
The IPO decision aligns with HDFC Bank’s recent financial performance. The bank reported steady results for the September quarter of the 2025 fiscal year. This positive news likely contributed to investor confidence. HDB Financial Services, in which HDFC Bank holds a 94.5% stake, is a key player in India’s non-banking financial sector. The planned share sale is subject to various factors. These include market conditions, regulatory approvals, and other considerations.
