HDB Financial, Brigade Hotel, Kalpataru fall below IPO issue price

Shares of HDB Financial, Brigade Hotel and Kalpataru were trading at their lowest point since the listings in July.

Shares of three recently-listed companies HDB Financial Services (HDB), Brigade Hotel Ventures and Kalpataru hit new lows, falling below their respective issue price on the BSE in Tuesday’s intra-day. These stocks were down up to 4 per cent in intra-day trade. In comparison, the BSE Sensex was down 0.5 per cent at 80,627 at 02:39 PM.

 

Among individual stocks, HDB Financial was down 0.5 per cent at ₹738.20, falling below its issue price of ₹740 per share. The stock of the non-banking finance company (NBFC) was trading at its lowest level since listing on July 2, 2025. It has corrected 17 per cent from its high of ₹891.65 touched on July 3. 

 

 

For the April to June 2025 quarter (Q1FY26) HDB reported a 2 per cent year-on-year (Y-o-Y) decline in its profit after tax (PAT) at ₹568 crore. Asset under management (AUM) grew by 14.7 per cent Y-o-Y to ₹1.1 trillion, with sluggish disbursement numbers at ₹15,171 crore, down 8 per cent Y-o-Y. Net interest income grew 18.3 per cent Y-o-Y at ₹2,092 crore.

 

Despite this, net interest margin (NIM) expanded +10 bps sequentially led by a shift towards a better yielding book. The management indicated more room for margin expansion as ~95 per cent of the bank loans are EBLR linked resulting in fast transmission of the rate cut.

 

Besides seasonality, the slowdown in disbursements comes largely on account of a slowdown in 2 segments – asset finance (CV) and unsecured business loans. In asset finance, which is largely light commercial vehicle or LCV, the company has reworked their asset strategy and moved towards a higher yielding or used finance segment over the last one year. This has resulted in a yield improvement of ~30 bps Q-o-Q, according to InCred Equities.

 

The new CV segment continued to face pricing pressure due to higher production costs along with subdued demand from the other end. While in unsecured business loans, the company was cautious to grow given the looming asset quality stress. These 2 segments also contributed largely to rising asset quality stress on the books, the brokerage firm said.

 

Shares of Brigade Hotel Ventures were down 2 per cent to ₹80.82, trading below its issue price of ₹90 per share. The company made its stock market debut on July 31, 2025, and has since failed to touch the issue price after listing. It had hit a high of ₹ 87.80 on the listing day.

 

Shares of real estate company, Kalpataru, hit a new low of ₹362.30, falling 4 per cent on the BSE in intra-day trade. The stock trades 12 per cent below its issue price of ₹414 per share. It has corrected 21 per cent from its high of ₹458.10, touched on July 9. The company made its stock market debut on July 1, 2025.

 

“Kalpataru’s initial issue is priced at 186.3x FY25 EBITDA (annualized 9MFY25), which appears expensive compared to a broad set of listed peers operating in the mid-to-high end real estate segment. We understand the earnings of the real estate business can be highly volatile led by the nature and value of the projects developed,” KRChoksey Shares & Securities Private Limited had said in IPO note.

 

However, the sector outlook remains optimistic, supported by favorable demographic trends, urbanization, and rising nuclear households. New project launches are expected to remain concentrated among organized developers with strong execution capabilities. Cities like Hyderabad, Bengaluru, Noida, and Surat are gaining traction as secondary hubs for expansion beyond MMR and Pune. Infrastructure investments, such as expressways, regional airports, and mass transit systems, will continue to shape micro-market demand patterns, the brokerage firm said.