HDB Financial Services, HDFC Bank's non-banking financing subsidiary, is planning an initial public offering (IPO) and is in talks with several global investment banks to select consultants, according to a credible report. Bank of America Securities, Morgan Stanley, and Nomura are now in talks to shortlist advisers, but other banks may join in the next few weeks, according to sources.

While the conversations are still in the early stages, a final decision is expected in the next few weeks. The IPO is expected to fetch around Rs 10,000 crore ($1.2 billion), with HDFC Bank's holding diluted by nearly 10%.

"The NBFC (non-banking finance company) is in the final stage of appointing lead managers to the IPO after it received a nod from HDFC Bank last month to start the listing process," a source told the newspaper. "It feels the markets are buoyant and this is the right time for the IPO."

According to the source, the NBC stock is currently trading at Rs 1,130-1,140 a share in the grey market, valuing the company at around Rs 90,000 crore ($10.7 billion).

On July 20, the board of HDFC Bank received in-principle approval to begin the listing process for HDB. According to the article, a committee of directors has been appointed to oversee the procedure, which is required to meet Reserve Bank of India (RBI) standards.

HDB, as an upper-layer NBFC, is required by regulatory standards to list by September 2025. HDB signaled preparation for an IPO in June, with Chief Credit Officer Rohit Patwardhan stating that the company is prepared in terms of compliance and documentation, but is awaiting final instructions from the parent company, according to the article.