JM Financial Limited, BNP Paribas, Bofa Security Services Limited, Jefferies India Private Limited, Morgan Stanley India Company Private Limited, Motilal Oswal Investment Advisors Limited, Nomura Financial Advisor and Securities (India) Private Limite Nuvama Wealth Management Limited and UBS Securities India Private Limited Are the Book-Running Lead Manners of the IPO.
MUFG INTIME India Private Limited is the registrar of the issue.
Let’s take a look at 10 key things from the red herring principal (rhp) of HDB Financial that Investors Might Want to Know Before Subscribing to the Issue.
1. HDB Financial IPO – Promoters
HDFC Bank is the promoter of HDB Financial. HDFC Bank Holds 750,596,670 equity shares of the company of face value of 10, Equivalent to 94.04 per cent of the pre -offer is ited.
2. HDB Financial IPO – Major Peers
Aditya Birla Finance, Bajaj Finance, Cholamandalam Investment and Finance Company, HDB Financial Services, L&T Finance, Mahindra & Mahindra Finance, Shriram Finance, Shriram Finance and Sundaram Finance and Tata Capital Are Some of the major peers of the company.
3. HDB Financial IPO-Business
According to the rhp, highlighting a crisil report, hdb financial is the seventh-largest, diversified retail-focused non-banking financial company (nbfc) in terms of the trick Loan Book, At 902.2 Billion as at March 31, 2024, Amongst Its NBFC Peers.
HDB Financial offers a Large Portfolio of lending products to a divese customer base through a wide omnichannel distribution network.
“Our lending products are offered through our three business verticals: enterprise lending, asset finance and consumer finance. Philosophy is evidentized by our strong and sustained growth and profits metrics, “Says the company’s rhp.
4. HDB Financial IPO-Financial Performance
The company’s total assets, at the end of fy25, study at 1,08,663.29 Crore.
Its Profit after Tax (PAT) for23 Study at 1,959.35 Crore, which rose to 2,460.84 Crore in FY24. In FY25, The Company’s Pat Study at 2,175.92 Crore.
Total Revenue from Operations in FY23 WAS 12,402.88 Crore, which rose to 14,171.12 Crore and 16,300.28 Crore in FY24 and FY25, respectively.
As of FY25, HDB Financial has the fourth-laest gnpa ratio of 2.26 per cent and the fifth-laest nnpa ratio of 0.99 per cent, amnst its nbfc peers as of March 31, 2025, According to the rhp.
5. HDB Financial IPO-Profitability Parameters
As of FY25, HDB’s Average Cost of Borrowing Stood at 7.90 per cent, which is the Sixth Lowest Amongst Peers. Also, HDB Financial has the fifth-Highest Return on Equity at 14.72 per cent amongst its nBFC peers as of fy25.
As of FY25, HDB Financial has Third Highest Leverage levels (5.9 times) and Third Highest Provision Coverage Ratios (55.95 per cent) Amongst Its NBFC Peers as of FY25.
6. HDB Financial IPO- Distribution Footprint of Peers
According to the rhp, as of fY25, HDB Financial has the Highest Number of Employees (89,943) Followed by Shriram Finance which has been given had total of 79,872 employees. Also, HDB Financial has the second fastest growing customer franchies Amongst its NBFC peers (for which data is available) based on the number of customers at 19.2 million ass 2025, which has grown at a Cagr of 26.88 per cent between fy22 and fy25.
7. HDB Financial IPO- Under-Penetration of the Indian Banking Sector Provides Opportunities for Growth
According to the company’s rhp, under-penetration of the Indian banking sector provides Opportunities for Growth.
“The Indian Banking Sector is significant under-charged, as observed in the current bank credit-to-GDP ratio of 56 per cent for India as of the fourath Quarter of Cy23. Branches as well as atms in India per 100,00 people contracts with other countries. Says.
8. NBFC Credit to Grow Faster Than Systemic Credit
The credit growth of NBFCs is expected to continue to risk at a faster pace.
According to the company’s rhp, during fy19 to fY 25, NBFC Credit is Estimated to have witnessed a growth at Cagr of 13.2 per cent. NBFCs’ aum as of fy19 was approximately 23 Lakh Crore, which Grew at a Six-Year Cagr of 13.2 per cent to 48 trillion as of fy25.
“Rapid revival in the economy is expected to drive consumer demand in fy26, leading to healthy growth in NBFCs,” Says the company’s rhp.
9. UNSECURED Loans Are Key Risks
As of March 31, 2025, UNSECURED LOANS Comprised 26.99 per cent of the company’s total gross loans, which is a decrease from 28.66 per cent as of March 31, 2024.
“Our unsecured loan portfolio is not supported by any collectorate that could help ensure repants of the loan, and in the event of non-non-speed by a borrow of one of the next Unpaid Balance, “Says the company.
10. High Competition a Key Challenge
The rhp highlights that the lending services Industry in India is highly competition, include competition from establed banks and NBFCs Hiving Large Networks of BRANCHS Technologies and cross-with-with capability, Fintech Start-ups and Private Unorganized and Informal Financiers in Rural Areas.
The company says its inability to compely
“Our market share, on the basis of our AUM (Assets Under Management), for25 is approximate 2.22 per cent, according to the crisil report,” Says the company’s rhp.
Disclaimer: This story is for educational purposes only. The views and recommendations about individual analysts or broking companies, not mint. We Advise Investors to Check With Certified Experts Before Making Any Investment Decisions, As Market Conditions Can Change Rapidly, and Circumstances May Vary.
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