The two sides are seeking to reach an agreement in about a month, the people said, asking not to be identified discussing private information. MUFG has been working on the purchase of a 20% stake in HDB Financial Services, Bloomberg News reported on April 12.
MUFG in talks to buy 20% stake in HDB Financial Services from HDFC Bank at $9-10B, unlocking value post $60B merger, with $2B investment, IPO preparations per RBI regulations.
HDFC Bank holds 94.7% of its HDB Financial Services and is looking to divest a 10 percent stake in the IPO. This could potentially result in an issue size ranging from ₹7,500-10,000 crore
For the October-December quarter of the financial year (FY) 2023-24, HDB Financial Services reported a profit of Rs 640 crore compared to Rs 500 crore last year.