G. Ramesh Of HDB Financial Services , NBFC Arm Of HDFC Bank Talk About Their Rs 12,500 Crore IPO

In conversation with Riddhima Bhatnagar of business today, G Ramesh MD and CEO of HDB Financial Services talks about the company's rationale behind launching the IPO at this time. The IPO hits the floor on 25th June with a price band of 700-740 per share. IPO consists of fresh issue of Rs 2500 crore along with offer of sale of Rs 10,000 crore form HDFC bank . Ramesh says that retail focussed NBFC's favourable balance sheet prompted them to go for an IPO combined with RBI listing requirements. The company will use it IPO proceeds for enhancing company's Tier 1 capital base allowing them to fulfil future capital needs for various business segments including enterprise lending, asset finance and consumer finance. Post the IPO, HDFC bank stakes in the NBFC will reduce by 25%. The company also has an organized system in place to mitigate default risks. The company plans to use its customer centric approach in standing out amongst its peers.