HDB Finance Share Gains 30% In 1 Month Ahead Of IPO

As SEBI approved the NBFC’s draft papers, HDB Finance’s Share Price rallied 30% on May 25. On June 4th, 25, the unlisted share price was Rs 1,265, more than 30% of what it was at the same time last month, Rs 955 per share.

This jump is not sudden, as the HDB Share price has been growing steadily over the past year,in just the last year, it grew by more than 17%.

The hdb finance share price today is Rs 1,155 per share.

HDB Finance IPO

HDB Filed its Draft Red Herring Prospectus(DRHP) on November 24.  This initial public offer is for Rs 12,500 crore, where Rs 10,000 crore is an offer for sale (OFS) and Rs 2,500 crore is a fresh issue, accruing to around 10% of HDB’s equity.

The offer was under SEBI scrutiny over a potential violation of the company’s act, which related to a private placement of shares to more than 50 employees of HDFC Bank, which has since been resolved.

HDB Financial must list by September to comply with the RBI’s upper-layer NBFC norms. In addition to that, if the RBI’s 2024 draft circular on bank subsidiaries is finalised, HDFC Bank will also have to bring its stake down to 20% in HDB, where it currently owns more than 94% stake.

HDB Financial Highlights

*The above figures are in Rs crores.

1. Interest Earned rose from ₹11,156.7 Cr to ₹13,835.8 Cr, reflecting a 24.03% increase, indicating strong growth in the core lending business.

2. Interest Expended jumped from ₹4,864.3 Cr to ₹6,390.2 Cr, a 31.37% rise, which outpaced interest income growth, suggesting pressure on spreads due to higher cost of funds.

3. PAT (Profit After Tax) declined from ₹2,460.8 Cr to ₹2,175.9 Cr, showing an 11.59% drop, driven by rising costs and possibly credit provisioning.

4. EPS (Diluted) fell from ₹31.04 to ₹27.32, a 12% decline, in line with the fall in PAT, indicating reduced shareholder earnings.

5. Gross Stage 3 Ratio (NPA%) increased from 1.90% to 2.26%, marking an 18.95% deterioration in asset quality.

Is HDB Stock a Good Buy?

Backed by HDFC, the current hdb financial share price can be a gainful buy, especially with IPO around the corner. At Stockify, we help our clients uncover the best-unlisted shares and increase their wealth with our in-depth research and insights. Stockify serves all your unlisted share needs with the best offerings. 

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