HDB Financial Services Limited is coming up with an IPO consisting of a fresh issue of shares worth INR 2,500 crores and an offer to sell existing shares worth INR 10,000 crores. The company aims to strengthen the Tier-I capital base for future growth and enhance onward lending capacity. 

HDB Financial IPO – Important Dates 

HDB Financial Services IPO – Company Profile 

HDB Financial Services Limited, a leading retail-focused NBFC-UL in India, offers diverse lending products through Enterprise Lending, Asset Finance, and Consumer Finance, supported by an extensive omnichannel distribution network and strong growth metrics. 

They are a diversified NBFC with a balanced secured-unsecured loan mix, offering Enterprise Lending, Asset Finance, and Consumer Finance. Their omnichannel distribution network spans 1,772 branches, external partners, and deep micro-market reach. 

They leverage strong digital capabilities for sourcing, credit assessment, risk management, and collections. They achieve 95% digital onboarding and collections by integrating tech-driven processes, enhancing efficiency, productivity, and customer engagement across operations. 

HDB Financial Services Limited IPO Fundamental Analysis 

HDB Financial Services Limited’s financial analysis reveals a mixed performance. Revenue has grown steadily, supported by rising equity, profitability, EPS, RoE, and total assets, reflecting strong financial performance and potential business growth. 

• Revenue Trend: The revenue increased from ₹113,062.9 millions in March 2022 to ₹124,028.8 millions in March 2023. The revenue for the current year’s 6-month period ending September 2024 is INR 78,906.3 million. 
• Equity and Liabilities: Both equities and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹10,114.0 million in March 2022 to ₹11,727.0 million by September 2024. This improvement in profitability could be a source of confidence among investors. 
• Earnings per Share (EPS): The diluted EPS has risen from ₹12.80 in March 2022 to ₹14.77 by September 2024, reflecting higher earnings per share for investors. 
• Return on Equity (RoE): The RoNW has increased from 11.25% to 16.39%, indicating an increase in the company’s ability to generate returns on shareholder equity.
• Financial Position: Total assets have increased, suggesting potential business growth. 

HDB Financial IPO Financial Analysis 

HDB Financial Services IPO Peer Comparison 

HDB Financial Services, Bajaj Finance, Sundaram Finance, L&T Finance, Mahindra Finance, Cholamandalam Investment, and Shriram Finance are prominent NBFCs in India, offering a wide range of financial services and driving growth across various sectors. 

HDB Financial Services Limited IPO Objective 

The main objective of HDB Financial Services Limited is to strengthen the Tier-I capital base for future growth and enhance onward lending capacity. 

Augmentation of the company’s Tier–I capital base to meet the company’s future capital requirements, including onward lending: The company intends to utilise the net proceeds to enhance its Tier-I capital, supporting business growth, meeting regulatory capital adequacy requirements, and funding onward lending, operating expenses, and capital expenditure for future expansion. 

HDB Financial IPO Risks And Challenges 

HDB Financial Services Limited’s limited risk includes exposure to India’s economic conditions, customer defaults, collateral declines, and regulatory changes. HDFC Bank’s 94.36% stake influences policies, with potential ownership reduction impacting operations, borrowing costs, and share price. 

• India’s economic conditions influence the company’s financial performance, including interest rates, inflation, geopolitical tensions, liquidity issues, and natural disasters. A slowdown or adverse macroeconomic factors could negatively impact operations, loan demand, and financial health. 

• The company may experience customer defaults, payment delays, and an increase in Gross Stage 3 loans. Declining collateral values, inaccurate credit assessments, and higher regulatory provisioning requirements could negatively affect financial performance and operations. 
• HDFC Bank holds a 94.36% stake in the company, influencing its policies. A potential reduction in HDFC Bank’s owners’ banks due to RBI rules may impact operations, borrowing costs, and share prices, affecting business and shareholder interests. 

HDB Financial Services Limited IPO – Industry & Market Potential 

Corporate credit, driving two-thirds of systemic credit, saw slower growth during Fiscal 2021 due to the economic slowdown. However, retail credit surged, supporting overall credit growth, expected to continue at 13-15% through fiscal 2027. 

NBFCs, growing at an 11% CAGR from Fiscal 2019 to 2024, are expected to continue strong growth at 15-17% from Fiscal 2024 to 2027, driven by demand in retail and MSME loans in the wholesale segment. 

The MSME sector, crucial to India’s economy, employs 196 million people and contributes 45.73% to exports. Government initiatives like Udyam Assist and PM Vishwakarma aim to formalise and enhance MSME growth, targeting 40-50% GDP contribution by 2030. 

HDB Financial Services IPO – Type of Offer 

HDB Financial Services Limited plans a fresh issue of shares, seeking INR 2,500 crores to strengthen the Tier-I capital base for future growth and enhance onward lending capacity. Additionally, the company proposes an offer to sell existing shares worth INR 10,000 crores. 

1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 2,500 crores. The company intends to utilise the proceeds from the fresh issue to strengthen the Tier-I capital base for future growth and enhance onward lending capacity.
2. Offer for sale: HDB Financial Services Limited is offering to sell existing shares worth INR 10,000 crores. The following are the details of the existing shareholders who are also the promoters selling the shares:

HDB Financial IPO Offer Size 

The offer size of HDB Financial Services Limited is yet to be announced, consisting of a fresh issue of shares worth INR 2,500 crores and an offer to sell existing shares worth INR 10,000 crores. The company aims to strengthen the Tier-I capital base for future growth and enhance onward lending capacity. 

HDB Financial Services IPO Allotment Structure 

HDB Financial Services Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

How to apply for HDB Financial Services IPO?

To apply for the HDB Financial Services Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the HDB Financial Services Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the HDB Financial Services Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO. 

How do you check HDB Financial Services IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the HDB Financial Services Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the HDB Financial Services Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the HDB Financial Services Limited IPO:

● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the HDB Financial Services Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

HDB Financial Services Ltd IPO Offer Registrar

The registrar for the HDB Financial Services Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Link Intime India Private Limited

C-101, 247 Park, L.B.S Marg

Vikhroli West,

Mumbai 400 083

Maharashtra, India

Tel: +91 810 811 4949

E-mail: [email protected]

Website: www.linkintime.co.in 

HDB Financial IPO – FAQs