Rising asset quality on top of board’s mind, HDB says ahead of IPO

Mumbai: HDB Financial Services, the country’s largest non -bank financial company (NBFC), said that on Friday, the first public offering (IPO) reached a 7.2 billion dollars for the first week after feedback from investment bankers.

The out -of -bank financier initially looked at a 10 billion dollar valuation, which was divided into $ 7.2 billion on a potential impact concerns of the Indian draft bank (RBI), which required banks to reduce their shares in NBFC weapons similar to 20%.

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Public offering price La700 and La740 per share, this is not a 40% discount from the market price. Stocks traded around La‘Gray market’ 1,200-1.250.

Ganesan Ramesh, “Last year we went on a public offering journey, both abroad and abroad with investors, abroad, abroad and abroad and abroad in contact, so we believe that the price based on IPO is the price of discovery mechanism.” He said.

Hdb financial wants to upgrade La12,500 Crore via IPO, the offer will take place between 25-27 June.

The public offering will see a new problem La2,500 crore and an offer for sale LaHDFC Bank, which is currently 94.6% in the company, is 10,000 Crore.

The bank’s share will be diluted up to 75% after the public offering.

The HDB also saw concerns about increasing bad loans as the company saw that its non -gross performance rose from 1.9% to 2.26% at the end of March 2024 at the end of March 2025.

“The quality of assets has been at the top of the mind of the committee. Until 2022, the quality of assets of an NBFC, perhaps the risk is slightly different in this segment, serves a segment that receives inadequate service because the risk is slightly different.” He said.

HDB has a diversified credit book with business loans that account for 39% of assets under management, 38% and 39% of assets calculating consumer financing 23%. Approximately 73% of the credit book is secured and 27% is unsecured.

According to Broken Invetec, HDB, Bajaj Finance and Cholamaandalam investments continue to be structurally weaker than peers.

“RoA (assets yield) is 3.03% and Roe (self -equivalent yield) is 19.55%, while these metrics are left in the shade with higher operating costs and a slower growth orbit.” He said. “Considering the estimated 2.7x FY27 price-book valuation, we see the public offering as a tactical bet only and be careful until the quality of assets is improved.”