India's markets regulator, the Securities and Exchange Board of India (SEBI), has approved the initial public offering (IPO) of HDB Financial Services, marking the HDFC group's first public float in seven years.
According to a document published on the SEBI website on Tuesday, the regulator issued observations on the public listing, allowing the company to proceed with its IPO, a source with direct knowledge of the matter said.
SEBI and HDFC Bank did not immediately respond to a Reuters request for comment.
In October, HDB Financial filed for an IPO of up to 125 billion rupees ($1.5 billion).
HDFC Bank, which holds a 94.3% stake in the lender, will sell shares worth up to 100 billion rupees, while fresh shares worth up to 25 billion rupees will be issued.
HDB Financial's listing follows new norms introduced by the country's central bank in 2022 that require large non-banking financial companies to be listed on stock exchanges by September 2025.
For the quarter ended March 31, HDB Financial Services posted a profit of 5.3 billion rupees, while its net revenue came in at 26.2 billion rupees. The company's total loan book was 1.07 trillion rupees as of March-end.
