Suspense crime, Digital Desk : Get ready for one of the most anticipated stock market debuts of the year. HDB Financial Services, the highly-valued non-banking financial company (NBFC) and a subsidiary of banking giant HDFC Bank, is preparing to launch its Initial Public Offering (IPO) next month, in July 2024.

In a move catching the eye of investors, the price band for the IPO has been reportedly fixed between ₹800 and ₹850 per share. This pricing is particularly noteworthy as it represents a significant discount of approximately 25-30% compared to its current trading price of around ₹1,150 per share in the unlisted market, offering a potentially attractive entry point for public investors.

The total size of the public issue is expected to be a substantial ₹10,000 crore (approximately $1.2 billion). This will comprise a fresh issue of shares worth ₹2,500 crore, with the proceeds going to the company to fuel its growth. The remaining ₹7,500 crore will be an Offer for Sale (OFS), where the promoter, HDFC Bank, will sell a portion of its 94.7% stake.

The primary driver behind this IPO is a regulatory mandate from the Reserve Bank of India (RBI). The central bank requires large NBFCs to be listed on the stock exchanges within a specified timeframe to enhance transparency and regulatory oversight.

As a subsidiary of India’s largest private sector bank, HDB Financial holds a strong position in the retail finance sector, offering personal loans, business loans, and other credit services. The upcoming IPO is poised to be a landmark event in the Indian capital markets, drawing significant interest from both retail and institutional investors.

Read More: HDB Financial Services IPO Set for July, Offers Shares at Discount to Unlisted Market Price