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  3. HDB Financial shares surge in unlisted market as HDFC Bank unit plans I…

HDB Financial shares surge in unlisted market as HDFC Bank unit plans IPO launch

15 Nov 2024

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Key Takeaways

HDB’s Rs 12,500 crore IPO supports growth, with strong FY24 results underpinning a valuation of Rs 78,000-87,000 crore.


HDB’s Rs 12,500 crore IPO supports growth, with strong FY24 results underpinning a valuation of Rs 78,000-87,000 crore.


hdb

HDB Financial Services

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Expert Analysis

HDB Financial Shares Surge Ahead of IPO Launch by HDFC Bank Unit.

Expert Analysis:

  • IPO Plans and Compliance: HDB Financial Services is raising Rs 12,500 crore through an IPO to comply with RBI’s 2022 listing mandate for upper-layer NBFCs.

  • Purpose of IPO Proceeds: Funds raised will strengthen the company’s Tier-I capital base to support future growth.

  • Unlisted Share Market Activity: Shares peaked at Rs 1,450 in October but now trade at Rs 1,295, reflecting sustained investor interest.

  • Valuation Target: HDFC Bank targets a valuation of Rs 78,000-87,000 crore for HDB Finance, with a price-to-book ratio of 4.5-5 times.

  • Strong FY24 Financial Performance: Loan book grew 17 percent year-on-year to reach Rs 66,000 crore, driven by strong demand for personal, vehicle, and small business loans. 

  • Financial Growth: Total revenue increased from Rs 12,402 in the previous year to Rs 14,171 crore In the FY 2023-24, While profit increased from Rs 1,959 crore in FY23 to Rs 2,460 crore in FY24.

Publisher:money control