HDB Financial Services, one of the leading non-banking financial companies in India is eyeing to raise $1.5 billion in its initial public offering (IPO), the firm's parent company HDFC said. 

HDFC Bank which holds a 94.6 percent stake in HDB Financial will sell shares worth $118 billion in the offering. 

The financial institution added that the price and other details of the proposed IPO will be determined in due course. 

HDB Financial Services Appoints Banks for IPO

The news of the latest IPO comes at a time when a recent London Stock Exchange Data signifies rising offerings in the Indian market. 

According to LSEG data, 269 companies in India have raised more than $12.57 billion through IPOs so far this year, according to LSEG data, higher than the $7.42 billion raised in the entire 2023. 

A report by Money Control said that HDB Financial Services has already appointed four investment banks including Jefferies, JM Financial, Morgan Stanley and Nomura for the IPO. 

It should be noted that HDB Financial Service's decision to go public follows a set of new norms introduced by the Reserve Bank of India in 2022 that required large non-banking financial companies to be listed on stock exchanges by September 2025. 

Established in 2007, HDB Financial Services has more than 1,680 branches across India, and the NBFC offers secured and unsecured loans. 

India's Thriving IPO Market

In September, Bajaj Housing Finance went public, and emerged as one of the largest listing in the Indian IPO market this year. 

Earlier this month, Hyundai Motor $3.3 billion IPO was oversubscribed by more than two times, attracting aggressive bidding from institutional investors. 

In September, another report released by UK-based consulting firm GlobalData revealed that India led the global IPO market in the first eight months of this year, with 227 listings happening in the country's exchange totaling $12.2 billion. 

According to GlobalData, this massive growth was driven by strong market sentiment and a favorable macroeconomic environment. 

The report added that India's small and medium enteprises also played a crucial role in driving the IPO market in the first eight months, supported by strong demand from local retail investors and institutions.