HDB Financial Services may seek RBI extension on listing deadline

HDFC Bank's NBFC arm may ask the RBI for more time to meet its September 2025 listing deadline as IPO approval faces delays over compliance issues and regulatory hurdles

HDB Financial Services, the non-banking financial arm of HDFC Bank, is likely to request an extension from the Reserve Bank of India (RBI) for its September 2025 deadline to go public, according to people familiar with the matter.  

 

As an upper-layer NBFC, HDB Financial is required to list on stock exchanges by September according to RBI guidelines. The company filed its draft red herring prospectus (DRHP) in November 2024 for a ₹12,500-crore initial public offering (IPO), which remains pending with the Securities and Exchange Board of India (Sebi).  

 

According to sources, the delay stems from unresolved compliance issues, including potential breaches of norms related to share issuances by unlisted companies. These hurdles could prevent HDB from meeting the current September deadline.

 

An HDFC Bank spokesperson said, "Our subsidiary, HDB Financial Services, has filed its DRHP with Sebi and awaits final observations."

 

Typically, companies take about 3-4 weeks to prepare for a large IPO after obtaining a go-ahead from the regulator. 

 

HDB’s IPO will be the largest by an NBFC and fifth-largest overall to hit the domestic markets. 

 

“The company still has a decent runway till September to list. However, we don't know when the legal issues with Sebi will get resolved. Also, market conditions are such that we have seen barely one IPO since mid-February. While the company has already initiated steps to list, it is better to apprise the regulator on the status,” said an investment banker, who asked not to be named. 

 

HDFC Bank, which owns 94.36 per cent of HDB Financial, plans to offload shares worth ₹10,000 crore via an offer for sale (OFS), while the remaining ₹2,500 crore will be raised through a fresh issue. The proceeds are earmarked to bolster Tier-I capital and support future lending needs.  

 

The IPO approval process has been complicated by alleged violations of the Companies Act, including excess shareholders and ESOP issuance irregularities. Sebi’s last communication with merchant bankers on IPO-related matters dates back to March 12. 

 

While an unrelated appeal by HDB Financial is pending before the Securities Appellate Tribunal (SAT), legal experts said that it does not impact the IPO process.  

 

Meanwhile, HDB Financial’s unlisted shares have seen a sharp decline, trading at around ₹985 apiece — which values the company at over ₹78,000 crore, per UnlistedZone data. At the peak, shares of the NBFC had climbed to ₹1,500.