HDB Financial Services, a unit of country's largest private lender HDFC Bank, has approved raising Rs 2,500 crore through a fresh issue of shares in its initial public offering (IPO), the lender said in an exchange filing on Friday.
"We wish to inform you that the Board of Directors of the Company at its meeting held today has inter-alia, subject to the approval of the shareholders, considered and approved the IPO of the equity shares of face value Rs 10 each comprising of a fresh issue of equity shares aggregating up to Rs 2,500 crore and an offer for sale (OFS) of equity shares by existing and eliglible shareholders of the company who may offer to tender their equity shares which is subjected to approval of the shareholders of the company, market conditions, receipt of applicable approvals, regulatory clearances and other considerations," the bank stated.
The initial share sale announcement comes at a time when the Indian IPO market is all set for a big leap.
According to Pantomath Capital Advisors, "The Indian IPO market is poised for a significant leap, with large corporations in IPO Street, demonstrating growing investor confidence in the Indian market. With 59 IPOs raising Rs 63,862 crore and an average first-day gain of 30 per cent, far above the global average of 22 per cent, the demand for Indian IPOs is clear."
Both local and international investors are driving this momentum, and all signs point to continued growth and opportunities ahead, it added.
Meanwhile, Indian equity benchmarks extended their record run today, led by solid gains in banks, financials, automobile, consumer and realty stocks. Broader market stocks (mid- and small-cap shares) also settled on a positive note.