IPO preparations for HDB Financial Services, a subsidiary of HDFC Bank, have been put on hold. In order to improve its technology platform, the NBFC arm will concentrate on that. It is possible that a limited stake sale will be used to test the market for price discovery.
Earlier this year, Aditya Puri, the bank's founder and former MD & CEO, stated that the HDB was considering an initial public offering (IPO). But today, under the leadership of Puri's successor, Sashidhar Jagdishan, there is some reconsideration about going public for the time being.
During a recent analyst conference call, CFO Srinivasan Vaidyanathan stated that numerous international and domestic investors had expressed interest in the company's growth goals, and that the bank may test the market in terms of price discovery in the near future. 'We'll wait until Covid is no longer in the picture and the growth momentum has begun to build up before making a decision,' Srinivasan added.
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