HDB Financial Services rises 6% a day after listing; stock up 20% in 2 days

HDB Financial Services share price jumped 6 per cent, extending rally for the second consecutive session; the stock has risen nearly 20 per cent in two day of listing

HDB Financial Services share price spiked 6 per cent in trade amid heavy volumes and a day after making a positive market debut. The scrip extended its rally for the second day and touched all-time high at ₹891.65 per share. On BSE, at 11:33 AM, 2.14 million shares were traded while on the National Stock Exchange (NSE), 21.4 million shares changed hands. 

 

At 11:34 AM, HDB Financial shares were trading 3.67 per cent higher at ₹871.8 per share on the BSE. In comparison, the BSE Sensex was up 0.39 per cent at 83,731.46. The company's market capitalisation stood at ₹72,296.74 crore. Its 52-week high was at ₹891.65 per share and 52-week low was at ₹827.5 per share.   FOLLOW STOCK MARKET LATEST UPDATES TODAY LIVE

 

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Emkay initiates 'Buy' on HDB Financial 

Emkay Global Financial Services initiated coverage on HDB Financial with a 'Buy' rating, keeping the target at ₹900 per share. 

 

According to the brokerage, HDB Financial Services' widespread reach, origination capabilities, and improved capital adequacy post-IPO will allow it to capture the credit-demand uptick amid growth stimulation pushed by the regulator/government, and improve net interest margin (NIM) amid frontloaded repo rate cuts.

 

HDB Financial's focus on the direct origination and collection model, it added, results in higher opex, which should also support relatively higher net yields. 

HDB Financial listing details

On the bourses, HDB Financial Services, on Thursday, listed at a 13 per cent premium against the issue price of ₹740 per share. HDB Financial shares made a debut at ₹835 per share on the BSE and the National Stock Exchange (NSE). 

 

According to the red herring prospectus (RHP), the company planned to utilise net fresh issue proceeds to augment its Tier-I capital base and meet future capital requirements, including onward lending arising from business growth.  

About HDB Financial Services

Incorporated in 2007 as a subsidiary of HDFC Bank, HDB Financial Services is the seventh largest retail-focused NBFC in India in terms of the size of the total gross loan book at ₹902.2 billion as of March 31, 2024, according to a CRISIL report. The company is categorised as an upper-layer NBFC by the Reserve Bank of India (RBI). It offers a large portfolio of lending products that caters to a growing and diverse customer base through a wide omnichannel distribution network. HDB's lending products are offered through its three business verticals, including Enterprise Lending, Asset Finance and Consumer Finance.