HDB Financial Services IPO Opens Today: 'Subscribe' Says Centrum Broking — Read Report

At the IPO price of Rs 740/share, the issue is valued at <3x FY26E P/ABV, which is at a steep discount to larger peers such as Bajaj Finance and Chola, discounting relatively lower return ratios and growth..Indogulf Cropsciences IPO: Should You Subscribe Or Not? Read Anand Rathi's Report.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..Centrum Broking 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..HDB, an NBFC–UL, operates a diversified lending portfolio across Enterprise Lending (39%), Asset Finance (38%), and Consumer Finance (23%), catering to MSMEs, income-generating vehicle loans, and consumer credit segments. The company primarily serves the underserved and underbanked segments—largely LMH with limited or no formal credit history. As of FY25, over 80% of its 1,771 branches are located outside India’s top 20 cities, with more than 70% situated in Tier-4 and smaller towns. The loan portfolio is highly granular, with the top 20 customers accounting for less than 0.34% of total gross advances. The average ticket size stood at approximately Rs 1.65 lakh, with the portfolio mix comprising 73% secured and 27% unsecured loans. On the liabilities side, HDB benefits from a strong, diversified borrowing base, backed by the highest domestic credit ratings (CRISIL AAA/Stable and CARE AAA/Stable). At the IPO price of Rs 740/share, the issue is valued at <3x FY26E P/ABV, which is at a steep discount to larger peers such as Bajaj Finance and Chola, discounting relatively lower return ratios and growth. We recommend a Subscribe rating to the issue, supported by: A robust brand franchise and granular retail lending model,A wide-reaching omni-channel (phygital) distribution platform, andAccess to low-cost funding anchored by a AAA-rated credit profile..Click on the attachment to read the full report:.HDB Financial Services IPO Subscribed 37% On Day One — GMP Declines.DISCLAIMERThis 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.

HDB Financial Services IPO Opens Today: 'Subscribe' Says Centrum Broking — Read Report

HDB Financial Services Ltd.'s IPO comprises of fresh issue of Rs 2,500 crore and Rs 10,000 crore through an offer for sale.

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