HDFC Bank share price edges higher after SEBI's nod to HDB Financial Services IPO

HDFC Bank share price edged higher on Wednesday after the bank’s subsidiary HDB Financial Services received SEBI approval to float initial public offering (IPO). HDFC Bank share price gained as much as 0.45% to ₹1,934.00 apiece on the BSE.

Capital markets regulator, the Securities and Exchange Board of India (SEBI), has issued observations for the public issue of HDB Financial Services. In Sebi's parlance, obtaining observations means a go ahead to float the public issue.

HDB Financial Services IPO will mark the HDFC group’s first public issue in seven years. HDFC Bank holds 94.36% stake in HDB Financial Services, a non-banking financial company (NBFC).

HDB Financial Services had filed for an IPO of up to ₹12,500 crore in October.

HDB Financial Services IPO will be a combination of a fresh issue of equity shares worth ₹2,500 crore and an offer-for-sale (OFS) of ₹10,000 crore by promoter HDFC Bank, according to the draft red herring prospectus (DRHP).

The company proposes to utilize the proceeds from the fresh issue to strengthen its Tier-I capital base. This will support future capital needs, including additional lending, to support business growth.

HDB Financial Services IPO has been mandated by the new norms issued by the Reserve Bank of India (RBI) in 2022 that require large non-banking financial companies to be listed on stock exchanges by September 2025.

HDB Financial Services reported a net profit of ₹530 crore for the quarter ended March 2025, while its net revenue was ₹2,620 crore. The company’s total loan book was ₹1.07 lakh crore as of March-end.

Technical Outlook

HDFC Bank share price is forming an 8-week-long flat base, patiently awaiting weekly moving average catch-up, which is expected to complete in 4 to 6 weeks, according to Anshul Jain, Head of Research at Lakshmishree Investments.

“This healthy consolidation phase indicates strong accumulation and sets the stage for the next breakout. Once the pivot breakout above ₹1,980 occurs, HDFC Bank stock is likely to gain momentum and head towards the ₹2,200 – ₹2,250 zone. The structure remains bullish, favoring a fresh uptrend post consolidation completion,” Jain said.

HDFC Bank Share Price Performance

HDFC Bank share price has remained flat in one month and has risen over 12% in three months. The banking stock has gained 8% YTD, while it is up 30% in one year. HDFC Bank shares have rallied 20% in two years and have delivered 92% returns in the past five years. 

At 9:50 AM. HDFC Bank share price was trading 0.10% higher at ₹1,927.20 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.