(Bloomberg) -- HDB Financial Services Ltd., a unit of India’s largest private sector lender, HDFC Bank Ltd. plans to raise as much as 125 billion rupees ($1.5 billion) through an initial public offering, further adding to big debuts in the nation’s equity markets. 

The Mumbai-based bank’s board Saturday approved its unit’s offer for sale of equity shares worth 100 billion rupees held by the bank and 25 billion rupees of new shares, according to a stock exchange filing. 

India’s IPO market has become red-hot as rapid economic expansion and rising incomes push the country’s market capitalization to an unprecedented $5 trillion. Regulators, fearing an overheated market, have tried to tamp down the frenzy. Indian listings have already raised $8.6 billion this year, more than each of the two preceding years, according to data compiled by Bloomberg. Locals have been putting record money into the market, with foreign investors also turning net buyers of Indian equities this year. 

HDFC Bank said the details of the offer will be “determined in due course by the competent body.” HDB Financial will continue to be a unit of HDFC Bank after the IPO. 

©2024 Bloomberg L.P.