HDB Financial Services IPO: Price Band, Financials, Peer Analysis, Risks & More — Read Nirmal Bang's Analysis

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

HDB Financial Services Ltd., a subsidiary of HDFC Bank's IPO opened today for subscription and the offer closes on June 27 . The company has fixed the price band in the range of Rs 700 to Rs 740 per share.

The Rs 12,500 crore IPO comprises of fresh issue of Rs 2,500 crore and Rs 10,000 crore through an offer for sale. Investors can place bids starting from a minimum of 20 shares and in multiples thereafter.

The shares will be listed on both the National Stock Exchange and the BSE on July 02.

Key Points

We attended the IPO meet for HDB Financial Services. HDB Financial Services is an upper layer diversified NBFC with the total gross loan book at Rs 1068.75 billion.

Company’s major customer base comes from underserved and aspirational segments, which are typically avoided by commercial banks. 

The company’s lending products are offered through its three business verticals:

1. Enterprise Lending, Asset Finance, and Consumer Finance. In FY25, Enterprise Lending, Asset Finance, and Consumer Finance accounted for 39.30%, 38.03%, and 22.66% of its total gross loans, respectively.

In FY25, AUM grew by ~18.5%, YoY. NIMs stood at 7.56%, GS3/NS3% came in at 2.26%/0.99%, while PCR stood at 56%. ROA/ROE came in at 2.16%/14.7%.

Management aims to maintain a stable ROA and deliver a consistent AUM growth.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.