Six firms, such as HDB Financial Services, which is affiliated with HDFC Bank, along with Vikram Solar, have been granted permission by the Securities and Exchange Board of India (Sebi) to collect capital via initial public offerings (IPOs). This information was shared in an announcement made by the market watchdog on Tuesday.
The other firms that received approval from Sebi include A-One Steels India, Shanti Gold International, Dorf-Ketal Chemicals, and Shreeji Shipping Global Ltd.
These companies submitted their draft red herring prospectuses (DRHPs) to Sebi from October 2024 through January 25, 2025. According to an update cited by PTI, they got regulatory feedback between May 27 and May 30.
In SEBI’s vocabulary, getting “observations” means the firm has received approval to move forward with its public offering.
HDB Financial Services' initial public offering includes a new share issuance totaling Rs 2,500 crore and a secondary sale of shares valued at Rs 10,000 crore from its parent company, HDFC Bank, as detailed in their draft red herring prospectus.
At present, HDFC Bank holds 94.36 percent of HDB Financial Services, which functions as a non-banking financial institution (NBFC).
The firm intends to utilize funds generated from the new issuance to bolster its Tier-I capital foundation. This enhancement will assist in meeting upcoming capital needs, such as further loans aimed at propelling business expansion.
The IPO launched by Vikram Solar will consist of a new issuance of equity shares totaling up to Rs 1,500 crore along with an offer for sale of up to 17.45 million shares from the company's promoters and their associated selling shareholders.
All six firms' shares are planned to be listed on both the BSE and the NSE.