Mumbai, Oct 19 (IANS): Leading private lender HDFC Bank on Saturday announced to sell equity shares worth Rs 10,000 crore via an offer for sale (OFS) in the upcoming initial public offering (IPO) of its subsidiary HDB Financial Services Ltd.

The size of the IPO of HDB Financial Services Ltd (HDBFS) will be Rs 12,500 crore, including a fresh issue of Rs 2,500 crore, the bank said in a regulatory filing.

“The Board of Directors of the bank approved the offer for sale (OFS) of such number of equity shares of face value of Rs 10 each of HDBFS aggregating up to Rs 10,000 crore held by the Bank in the proposed IPO, subject to applicable law, market conditions, receipt of necessary approvals/ regulatory clearances and other considerations,” said HDFC Bank.

Accordingly, “the IPO will be for such number of equity shares of face value of Rs 10 each of HDBFS aggregating up to Rs 12,500 crore comprising of a fresh issue of such number of equity shares of face value of Rs 10 each of HDBFS aggregating up to Rs 2,500 crore and an OFS of such number of equity shares of face value of Rs 10 each of HDBFS aggregating up to Rs 10,000 crore,” the bank informed.

The price and other details of the proposed IPO will be determined in due course by the competent body.

The public debut of HDB Financial Services is expected by the end of the current financial year. Post-IPO, HDB Financial Services will remain a subsidiary of HDFC Bank, complying with relevant regulations.

HDB Financial Services serves the retail and commercial segments, offering a wide range of products such as personal loans, vehicle loans, and loans against property.

The IPO will enable HDB Financial Services to meet a listing requirement mandated by the Reserve Bank of India (RBI).