HDFC picks Morgan Stanley, BofAML for HDB Financial Services IPO

HDFC Bank, India’s biggest lender by market value, has picked Bank of America and Morgan Stanley to manage an initial public offering of its non-banking finance unit, people with knowledge of the matter said. The bank plans to sell the shares in HDB Financial Services before March 31 in a deal that may raise about Rs 100 billion ($1.4 billion), the people said, asking not to be identified as the information is not public. HDFC Bank may hire more firms for the sale later, the people said. Selling shares in the unit will help the bank led by Managing Director Aditya Puri raise funds to expand lending as many non-bank financiers grapple with a liquidity crunch.