HDB Financial Services: CEO Says Listing At Premium Validates Business Model

HDFC Bank subsidiary HDB Financial Services had a strong debut on D-Street with a premium of nearly 13% over IPO price. The company management said the focus will now be on the growth of the business and navigate challenging economic cycles.

(This live blog has ended)

Sambhv Steel management told NDTV Profit that after the proceeds from the IPO's fresh issue will be used for loan repayment and make the company net debt-free.

"Our PAT will increase in the second quarter because our interest costs will go down after repayments. The utilisation will now increase on facilities that were stalled year. So our Ebitda will also increase," CEO and MD Vikas Goyal said.

HDB Financial Services Managing Director G Ramesh said the NBFC business goes through cycles and so the company has a product portfolio approach to pursue business in those sectors of the economy that are likely to do well in 12-18 months to ride out these cycles.

He also said the company has met the regulatory requirement of a minimum 25% free float. Parent HDFC Bank will continue to own 74%.

After a successful debut on the stock market, HDB Financial Services Managing Director G Ramesh said the focus now will be on corporate governance and deliver the right value to shareholders over the long term.

HDB Financial Services Managing Director G Ramesh said the listing price is a validation of their business model.

"We are independent of HDFC Bank. On unsecured business, we will play out the cycles as it comes. Confident of managing through a credit environment in the unsecured business," he said at a press conference.