HDB FINANCIAL SERVICES IPO
HDB Financial Services (HDBFS), Incorporated in 2007, is a leading Indian NBFC which serves both individual and business clients. HDB Financial Services is an established business having a strong capitalization in the market. It is one of the reputed and reliable financial institutions being accredited with Crisil AAA and Care AAA ratings on its banking services and long term debt. Also, it has an A1+ rating for its commercial papers and short term debt.
The HDB is involved in the business of Lending (secured & unsecured loans) and BPO services.
Under its lending business, HDB offers commercial vehicle loans, gold loans, personal loans, loans against property & other loans to individuals and businesses.
HDBFS BPO services include back-office work like forms processing, documents verification, accounting & financial services. Along with that, it also offers front office services like outbound marketing & collection services.
HDB Financial Services provides a one-stop solution for individuals by catering to their loans, investments, & insurance needs. The company has more than 1400 Branches in 24 states and 3 Union Territories.
HDBFS is valued at around ₹80-90,000 crores in the grey market. If it gets listed at this valuation, then HDB will be the 4th most valuable NBFC in India. Also, HDB will be the 5th company of the HDFC group to get listed on the stock exchanges.
The Assets Under Management (AUM) of HDB Financial Services grew to ₹57,014 crores in FY 2020 from ₹55,759 crores in FY 2019. It reported a PAT of ₹1,004 crores in FY 2020 and ₹1,153 crores in FY 2019.
HDFC Bank is the promoter of HDB Financial Services.
Strengths of the company:
- Very strong market capitalization.
- One of the most valuable NBFCs in India.
- Strong reach across 22 states & 3 Union Territories with more than 1400 branches.
- High Credit Ratings on its debt & banking facilities.
Purpose of the IPO:
- To meet the general corporate purposes.
- To raise capital for meeting business needs.
- For the expansion & growth of business.
Financial Performance of the company:
| 6 month period ended 30th September 2020 | FY 2020 | FY 2019 | FY 2018 | |
| Total Revenue | 5,371.3 | 10,756.47 | 8,724.21 | 7,061.99 |
| Total Expenses | 5,336.6 | 9,291.99 | 7,000.75 | 5,597.47 |
| Profit after tax | 26.0 | 1,004.85 | 1,153.24 | 951.74 |
| Total Assets | 61,043.0 | 60,714.46 | 55,706.98 | 44,753.92 |
*All the values are in Crores.
Valuation of the company:
| 6 month period ended 30th September,2020 | FY 2020 | FY 2019 | FY 2018 | |
| Basic Earnings per Share (EPS) | 0.33 | 12.78 | 14.71 | 12.18 |
| Diluted Earnings per Share (EPS) | 0.33 | 12.77 | 14.69 | 12.16 |
| Book Value Per Share | - | 101.80 | 91.36 | 79.22 |
IPO details:
| Face Value | Rs. 10 Per Equity Share |
| Market Lot | |
| Minimum Order Quantity | |
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| Fresh Issue | |
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| Listing | NSE, BSE |
Important IPO dates:
| Open Date | |
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| Refunds | |
| Credit of shares to Demat account | |
| Listing Date |