New Delhi, June 3 -- HDB Financial Services Ltd, owned by HDFC Bank Ltd, has received the capital markets regulator's approval for a Rs.12,500-crore initial public offering.

The non-bank financier filed its draft red herring prospectus (DRHP) on 30 October, comprising a fresh issue of up to Rs.2,500 crore and an offer for sale of up to Rs.10,000 crore. The Securities and Exchange Board of India issued an observation letter to the lender on 28 May.

The final set of Sebi observations is essentially an in-principle approval for the IPO, according to market participants. Typically, after a company files its DRHP, the regulator responds within 45 days. However, in this case, Sebi took about seven months.

"With these final observations in pl...