The IPO will be open till Thursday, June 27. The price band is set between Rs 700 and Rs 740 per share. Before the opening of the issue, the GMP is around Rs 74, which is 10% premium at the price of the points.
The offer has a new issue of Rs 2,500 crore and a proposal for sales of Rs 10,000 crore by parent HDFC Bank, which is currently 95.5% in the company.
Read: HDB Financial Services Catch all the latest updates on IPO
Strong financial and professional attendance
HDB Financial is one of the leading NBFCs in the country with a loan book of Rs 1.06 lakh crore by March 31, 2025. The company cited a net profit of Rs 2,176 crore for FY25, a significant increase with Rs 1,359 crore a year ago.
Its gross non-performing property (GNPA) was 2.49%, while the net NPA came to 1.38%, showing the quality of healthy property for a retail-centric NBFC.
The company has a PAN-India appearance with more than 1,700 branches in 1,200 cities and towns, and serves more than 1.9 million customers. Its business lends safe and unprotected personal loans, gold loans, and small and medium enterprises (SMEs).
Evaluation and recommendations
At the upper end of the price band, the IPO has estimated HDB Financial 3.7 times the financial year 25 estimates at a post-issue price-to-book price. Analysts consider it appropriate, viewing its performance and brand banking of HDFC Bank.
The brokerage house has given a thumb to the IPO. SBI Securities, Ventura Securities, and Anand Rathi all issued ‘subscribed’ calls, citing strong fundamentals, stable asset quality and long -term development possibilities. Ventura said in its report, “We believe the price of IPO is largely, which improves the company’s profitability, strong risk management and capital adequacy.”
Anand Rathi said, “IPO provides an opportunity to invest in a high quality, retail-centered NBFC that benefits HDFC Bank’s access, reputation and systems. Improvement return ratio and earnings visibility This makes it a captivating long-term bet.”
Use of income and listing
Income from the new issue will be used to increase the capital base of HDB financial and support its future lending activities. The OFS component sales shareholder will go to HDFC Bank. Post IPOs, the stake of the original bank will be reduced considerably, aligning with regulatory criteria.
The company is expected to be listed on both NSE and BSE in the first week of July.
,Rejuvenation: Recommendations, suggestions, thoughts and opinions given by experts are their own. They do not represent the ideas of economic time)
