The Securities and Exchange Board of India (SEBI) has approved six companies to raise funds through initial public offerings (IPOs). Among the authorized entities, HDB Financial Services, a subsidiary of HDFC Bank, plans to raise ₹12,500 crore. This includes a fresh issue of ₹2,500 crore and an offer-for-sale (OFS) of ₹10,000 crore by HDFC Bank.
HDFC Bank owns more than 94% of HDB Financial Services. IBS is a Non-Banking Financial Company (NBFC) and offers a range of financial services. The new issue serves to help the firm build up its Tier 1 capital. It will help the company increase lending and carry out other growth initiatives. Listing of the equity shares from the IPO will take place on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The IPO arrangement helps HDFC Bank reduce its stake in HDB and partially improves HDB's financial standing. By doing this, the bank is on track to meet its capital adequacy goals, which will be beneficial for future loan growth and expansion.
Alongside HDB Financial, Vikram Solar has received the nod from SEBI for its initial public offering (IPO), which includes both a fresh issue and an offer-for-sale. Promoters of Vikram Solar will divest part of their stake through the Offer for Sale (OFS) component. The funds will be allocated to support the company's strategic business needs, including capital expenditure and debt repayment. During this period, the solar energy sector's Vikram Solar filed its draft red herring prospectus (DRHP) between October 2024 and January 2025.
Between May 27 and May 30, the company heard observations from SEBI. Based on these findings, the firm can proceed with its public issue under the regulations. Companies that have gained approvals include A-One Steels India, Shanti Gold International, Dorf-Ketal Chemicals, and Shreeji Shipping Global Ltd.
SEBI's recent greenlights for IPO show growing interest from companies and a stable rise in public floats. Companies in finance, manufacturing, renewable energy, and logistics are raising capital to address their business needs.
The DRHPs are carefully reviewed, and the business information they describe is thoroughly examined before IPO approvals are granted. Once all approvals are granted, companies can debut their public offerings only if market conditions are favorable. Firms go to the public market to raise capital for development, ensure their financial stability, and increase awareness of their activities.