India's HDB Financial Services, a unit of HDFC Bank, has approved raising 25 billion rupees ($299 million) through a fresh issue of shares in its initial public offering (IPO), the lender said on Friday,

The lender has finalised allocation of 37.71 lakh equity shares to anchor investors at a price of Rs 120 per equity share.

HDB Financial Services plans Rs 2,500 crore IPO, with HDFC Bank holding 94.64% stake, targeting $7-8 billion valuation.

India's HDB Financial Services, a unit of HDFC Bank , has approved raising 25 billion rupees ($299 million) through a fresh issue of shares in its initial public offering, the lender said on Friday.

HDFC Bank has cleared a Rs 2,500 crore IPO for its subsidiary HDB Financial Services. The move follows RBI's mandate for upper-layer NBFCs to list.