Latest news with #VipinSinghal
Mint
7 days ago
- Business
- Mint
HDB Financial gets regulator's nod for ₹12,500-crore IPO
HDB Financial Services Ltd, owned by HDFC Bank Ltd, has received the capital markets regulator's approval for a ₹ 12,500-crore initial public offering. The non-bank financier filed its draft red herring prospectus (DRHP) on 30 October, comprising a fresh issue of up to ₹ 2,500 crore and an offer for sale of up to ₹ 10,000 crore. The Securities and Exchange Board of India issued an observation letter to the lender on 28 May. The final set of Sebi observations is essentially an in-principle approval for the IPO, according to market participants. Typically, after a company files its DRHP, the regulator responds within 45 days. However, in this case, Sebi took about seven months. 'With these final observations in place, the company has a 12-month window to file its red-herring prospectus (RHP) and can launch the IPO anytime within that period,' said Vipin Singhal, director at Anand Rathi Investment Banking. While the IPO market is currently subdued, a number of deals are lined up and ready to go once market sentiment improves, Singhal added. So far this year, the Nifty 50 has risen just 3%. Parent HDFC Bank, which owns 94.32% of HDB Financial Services, will sell shares worth ₹ 10,000 crore via an offer for sale. Last week, Bloomberg reported that HDB Financial Services was nearing Sebi's approval for its IPO. The nod would allow the subsidiary of HDFC Bank, the country's largest private sector lender, to finally move forward with a deal that could raise up to $1.5 billion, following months of waiting for regulatory clearance. At $1.5 billion, it would be the largest IPO by a non-bank financial company (NBFC) in India and the biggest across sectors since Hyundai Motor India Ltd's $3.3 billion listing last year. South Korea's LG Electronics had planned to list its Indian unit in May but has reportedly delayed the IPO due to market volatility and valuation concerns. The $3.3-billion offering may now take place in the second or third quarter of the current fiscal year, depending on market conditions, as per reports. The proposed listing would also help HDB Financial Services meet a regulatory norm that mandated certain large non-bank financiers to go public. The Reserve Bank of India (RBI) in its 2021 guidelines said that upper-layer NBFCs must be listed within three years of being identified as one. The non-bank subsidiary of India's largest private lender HDFC Bank was among the 16 names listed by RBI in September 2022, effectively giving it time till September 2025 to get listed. RBI regulations classify NBFCs into four layers based on the size, activity and perceived risks. The upper layer comprises prominent names like Tata Sons Pvt, LIC Housing Finance Ltd and Shriram Finance Ltd. Established in 2007, HDB Financial has three primary verticals: enterprise lending, asset finance, and consumer finance. HDB Financial reported a net profit of ₹ 2,176 crore in FY25, down from ₹ 2,461 crore in the previous financial year. Its gross non-performing assets (NPA) ratio, though down from the highs seen three to four years ago, rose in 2024-25, showed data from its FY25 annual report. In FY25, the gross NPA — bad loans as a percentage of total loans — stood at 2.26% compared with 1.9% in FY24. 'With the economy projected to continue growing, the company, with its diversified product portfolio, broad reach through its network of branches across the country and its digital infrastructure, is cautiously optimistic in its outlook for FY 2025-26,' said its FY25 annual report. Mint reported in January that the markets regulator is examining a potential violation of the Companies Act by HDB Financial Services 17 years ago, as the non-bank lender prepares for a $1.5 billion IPO, citing three people aware of the matter. As per the report, Sebi found that the lender in 2008 issued shares to more than 50 employees of its parent HDFC Bank through a private placement. Under the Companies Act, issuing shares to more than 50 people is considered a public issue, requiring compulsory Sebi clearance.
Mint
03-06-2025
- Business
- Mint
HDB Financial gets regulator's nod for ₹12,500-crore IPO
HDB Financial Services Ltd, owned by HDFC Bank Ltd, has received the capital markets regulator's approval for a ₹ 12,500-crore initial public offering. The non-bank financier filed its draft red herring prospectus (DRHP) on 30 October, comprising a fresh issue of up to ₹ 2,500 crore and an offer for sale of up to ₹ 10,000 crore. The Securities and Exchange Board of India issued an observation letter to the lender on 28 May. The final set of Sebi observations is essentially an in-principle approval for the IPO, according to market participants. Typically, after a company files its DRHP, the regulator responds within 45 days. However, in this case, Sebi took about seven months. 'With these final observations in place, the company has a 12-month window to file its red-herring prospectus (RHP) and can launch the IPO anytime within that period,' said Vipin Singhal, director at Anand Rathi Investment Banking. While the IPO market is currently subdued, a number of deals are lined up and ready to go once market sentiment improves, Singhal added. So far this year, the Nifty 50 has risen just 3%. Parent HDFC Bank, which owns 94.32% of HDB Financial Services, will sell shares worth ₹ 10,000 crore via an offer for sale. Last week, Bloomberg reported that HDB Financial Services was nearing Sebi's approval for its IPO. The nod would allow the subsidiary of HDFC Bank, the country's largest private sector lender, to finally move forward with a deal that could raise up to $1.5 billion, following months of waiting for regulatory clearance. At $1.5 billion, it would be the largest IPO by a non-bank financial company (NBFC) in India and the biggest across sectors since Hyundai Motor India Ltd's $3.3 billion listing last year. South Korea's LG Electronics had planned to list its Indian unit in May but has reportedly delayed the IPO due to market volatility and valuation concerns. The $3.3-billion offering may now take place in the second or third quarter of the current fiscal year, depending on market conditions, as per reports. The proposed listing would also help HDB Financial Services meet a regulatory norm that mandated certain large non-bank financiers to go public. The Reserve Bank of India (RBI) in its 2021 guidelines said that upper-layer NBFCs must be listed within three years of being identified as one. The non-bank subsidiary of India's largest private lender HDFC Bank was among the 16 names listed by RBI in September 2022, effectively giving it time till September 2025 to get listed. RBI regulations classify NBFCs into four layers based on the size, activity and perceived risks. The upper layer comprises prominent names like Tata Sons Pvt, LIC Housing Finance Ltd and Shriram Finance Ltd. Established in 2007, HDB Financial has three primary verticals: enterprise lending, asset finance, and consumer finance. HDB Financial reported a net profit of ₹ 2,176 crore in FY25, down from ₹ 2,461 crore in the previous financial year. Its gross non-performing assets (NPA) ratio, though down from the highs seen three to four years ago, rose in 2024-25, showed data from its FY25 annual report. In FY25, the gross NPA — bad loans as a percentage of total loans — stood at 2.26% compared with 1.9% in FY24. 'With the economy projected to continue growing, the company, with its diversified product portfolio, broad reach through its network of branches across the country and its digital infrastructure, is cautiously optimistic in its outlook for FY 2025-26,' said its FY25 annual report. Mint reported in January that the markets regulator is examining a potential violation of the Companies Act by HDB Financial Services 17 years ago, as the non-bank lender prepares for a $1.5 billion initial public offering (IPO), citing three people aware of the matter. As per the report, Sebi found that the lender in 2008 issued shares to more than 50 employees of its parent HDFC Bank through a private placement. Under the Companies Act, issuing shares to more than 50 people is considered a public issue, requiring compulsory Sebi clearance. The status of this matter is not publicly available.
Mint
26-05-2025
- Business
- Mint
Mint Exclusive: KKR eyes its largest Asia infra fund topping $9 bn, India to corner a big slice
Private equity giant Kohlberg Kravis Roberts (KKR) is raising its third and largest-ever Asia infrastructure fund that could top $9 billion, said three people familiar with the matter, with a large share going to India's expanding road and energy to logistics networks. 'The firm has already secured commitments for a first close for the new fund from its limited partners and is expected to announce it soon," said the first of the three people, who spoke on the condition of anonymity. 'While the final fund size is yet to be confirmed as fundraising continues, it remains in the $9 billion range, with India remaining a key market, consistent with the previous funds." The new fund surpasses the debut Asia fund of $3.9 billion and the $6.4 billion fund II that closed last year. As much as 30% of the corpus could be allocated to Indian infrastructure, the people said. The country accounted for 25-30% of KKR's first two Asia funds. Also read | KKR looks to sell RE Sustainability again, may fetch $1.5 bn KKR is not alone. Rival global investors like Blackstone and Brookfield have also ramped up bets on Indian highways to renewable energy plants as the country expanded and upgraded its core infrastructure base over the past decade, driven by public and private capital. Morgan Stanley expects the overall spending on the sector to rise steadily from 5.3% of the GDP in FY24 to 6.5% by FY29. A combination of factors–government initiatives, rising urbanization, population growth, and increasing foreign investment–have served as key growth drivers for the infrastructure industry, encouraging innovation and strengthening value chains along the way, according to Vipin Singhal, director, Anand Rathi Investment Banking. 'As a result, India is increasingly being viewed as a strategic anchor for Asia-Pacific infrastructure portfolios, especially as investors diversify away from China due to ongoing geopolitical tensions." KKR's new fund is expected to focus on roads and highways, energy transition plays, besides renewables, while retaining flexibility to pursue other infrastructure-linked assets, the third person quoted above said. KKR declined to comment on Mint's queries. Big India bet KKR's Asia infrastructure strategy is led by Hardik Shah, who joined the firm in 2018. In 2021, it hired Ami Momaya from the National Investment and Infrastructure Fund (NIIF); she was promoted to managing director for infrastructure, Mumbai in January 2025. Over the past few years, KKR has stepped up its India play through investments in power transmission via India Grid Trust (Indigrid), renewable energy ventures like Virescent Infrastructure and Hero Future Energies, highway assets under Highway Infrastructure Trust, decarbonization efforts through Serentica Renewables, and warehousing with Leap India. KKR has also begun booking profits from the Indian market. In February 2024, it exited Indus Towers Ltd by selling its entire 4.85% stake for around ₹2,750 crore. In December, it pared a 2.6% unitholding in Indigrid--India's first listed power sector infrastructure investment trust (InvIT)--for ₹277 crore. Also read | KKR, Partners Group to lead Darwinbox funding round Although KKR recently exited from Indus Towers, India Grid Trust, and a few more infrastructure portfolio companies, KKR still plans to deploy its next $10 billion in India at an accelerated pace, signalling a long-term bet on India's growth story, Singhal said. While KKR has traditionally focused on credit, real estate, and private equity, it is now making a strong push into infrastructure—especially in tech-driven areas like data centres, cybersecurity, and AI platforms—aligning with India's digital transformation, he pointed out. 'It's more of a strategic reallocation rather than an exit from the Indian infrastructure space." During the firm's Q1 earnings call on 1 May, Craig Larson, partner and head of investor relations at KKR, said, 'We'd expect we'll have a couple of closes in America and we'll launch fundraising for the flagship Asia strategy on the heels of that…a topic that is becoming front of mind." Larson also pointed to ongoing fundraising across Asia infrastructure, wealth platforms, and climate-focused vehicles. As of this year, KKR has fully deployed capital from its first two Asia infra funds, said the third person cited earlier. The strategy, which began in 2019, has grown to roughly $14 billion in assets under management (AUM), forming part of KKR's broader $59 billion global infrastructure business. Rival global investors are stepping up their presence in Indian infrastructure. Brookfield said in May it plans to scale its India assets under management from $30 billion to $100 billion, with infrastructure, particularly energy, renewables, digital, transport, and utilities, at the core. Its current India infrastructure AUM stands at $12 billion. Blackstone, too, aims to double its India exposure from $50 billion to $100 billion, expanding into infrastructure and credit alongside its large real estate play, the firm said in March. Tailwinds ahead The surge in global capital coincides with robust market projections for the country's infrastructure sector. India's logistics sector, valued at $317.26 billion in 2024, is expected to grow to $484.43 billion by 2029, while the warehousing market is projected to reach ₹2,243.79 billion by 2026, an annual growth rate of nearly 11%, according to a February report by the India Brand Equity Foundation (IBEF), a trust under the commerce ministry. The country improved its ranking in the World Bank's Logistics Performance Index to 38 in 2023, up from 44 in 2018, Singhal of Anand Rathi Investment Banking said. Also read | KKR to acquire control of HealthCare Global in $400 million deal Real estate (Reits) and infrastructure investment trusts (InVITs) are playing an increasingly important role in funding these projects. Reits and InVITs have amassed $15.6 billion ( ₹1.3 lakh crore) in four years through March 2024, the IBEF report said, citing data from the Reserve Bank of India. India's real estate sector, according to the report, alone drew $2.77 billion in investments in the second quarter of 2024. The push continues in the Union Budget 2025–26, with the capital investment outlay for infrastructure raised to ₹11.21 trillion, or 3.1% of the GDP, up from ₹10 trillion in the previous fiscal, amid the government's continued emphasis on infrastructure-led growth. According to Singhal, India is set for a major infrastructure push by FY28, with road investments expected to nearly double from $28 billion to $53 billion (17% CAGR), irrigation and water from $113 billion to $208 billion (13% CAGR), railways from $122 billion to $196 billion (13% CAGR), and energy and power from $161 billion to $282 billion (15% CAGR).
