HDB Financial Service
-7.44 % 1 M
HDB Financial Service
-7.44 %As of May 14, 2025, HDB Financial Service share price is INR 995.00 per share and the face value is INR 10.00 per share. The lot size of HDB Financial Service is 0 shares. The 52 week high for HDB Financial Service is INR 1,525.00, while the 52 week low is INR 995.00
About HDB Financial Service
A Comprehensive Overview of Price & Journey
Understanding HDB Financial Service Inception and Growth
Overview
Housing and Development Board (HDB) Financial Services was established in 2007, a Non-Banking Financial Company (NBFC) which is a leading entity in the non-banking financial sector. The company have 1,682 branches to get the underbanked and unbanked populations across the Country in more than 114 locations.
Housing Development Finance Corporation Limited (HDFC) is one of India’s largest and most reputable financial services organizations. HDB Financial Services is subsidiary of HDFC bank. HDFC holds total stake of 94.64% in HDB financial services.
Diverse financial products and services are offered by the company which includes enterprise lending, asset financing, consumer loans, fee-based products, and business process outsourcing (BPO) services. It is specialized in loan origination, underwriting, and a broad product range.
The Company holds the ‘CARE AAA/Stable’ rating by CARE Ratings Limited and ‘CRISIL AAA/Stable’ rating by CRISIL Ratings Limited for Long-Term Debt, Bank Facilities, Subordinated Debt and Perpetual Bonds and A1+ ratings for commercial papers.
The Company has total AUM of more than 90,235 Crores with more than 15.5 million Customers. Revenue from the lending business of the Company grew to 12,221.57 Crore in FY 2023-24 from 9,768.95 Crore in FY 2022-23. Revenue from the BPO services division declined to 1,949.55 Crore in FY 2023-24 from 2,633.93 Crore in FY 2022-23.
As per Money Control, HDFC Bank is in early talks with private credit funds to sell stakes in its subsidiary, HDB Financial Services. The discussions involve five domestic funds potentially acquiring 4-7% each, as part of a value discovery process ahead of HDB Financials’ mandated IPO by October 2025. This move follows unsuccessful talks with larger investors due to valuation disagreements. HDB Financial, with a loan book over Rs 90,000 crore, is reportedly seeking a valuation of 4-5 times book value, which some consider high in current market conditions.
HDB Financial Services aiming for a valuation between $9 billion to $12 billion and have plans to expand its branch by 150-200 in the current fiscal year to deepen its presence in microfinance markets. Despite potential regulatory changes by the Reserve Bank of India, HDB remains confident due to its balanced loan portfolio, with less than a fourth being unsecured.
The Reserve Bank India (RBI) categorized 16 big NBFCs as upper-layer NBFCs which includes HDB Financial Services as well, In October 2021, the central bank put in place a four-layered regulatory structure for NBFCs to minimize risks for the overall financial system.
Products Offerings
Consumer Durable Loan Digital Product Loan Lifestyle Product Loan Personal Loan Auto Loan Two Wheeler Loan Gold Loan Unsecured Business Loan Enterprise Business Loan Loan Against Property Loan Against Lease Rental Loan Against Securities
Asset Finance Micro Lending Fee-Based Products
Insurance Services BPO Services Salaried Perso Loan
Commercial Vehicle Loan Construction Equipment Loan Tractor Loan
Registered Office
Radhika, 2nd Floor, Law Garden Road, Navrangpura, Ahmedabad- 380 009
Strengths
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The company has a strong network of over 1,682 branches across 1,144 cities, serving 15.5 million customers.
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The Company’s extensive range of offerings fulfil diverse requirements of both households and enterprises across India.
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HDBFS has technical expertise through which it can automated loan application processes to facilitate informed credit decisions right from the initial stage
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HDBFS complements HDFC Bank’s product portfolio and customer coverage and supports sourcing retail loan portfolios
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The company has strong AUM growth which grew at a CAGR of 29% to 90,235 Cr in FY24
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Highly Skilled and Committed Workforce that delivers for the organisation.
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Strong Credit Rating: CRISIL and CARE have assigned the highest rating i.e. AAA.
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97% of applications are processed digitally.
Subsidiary
As of now the HDB Financial Services has no subsidiaries.
Vision
The company’s vision is to Be India’s most Admired NBFC; Through Great Execution, Driving Simplicity & Developing Humility
Mission
The company’s mission is to deliver innovative products and services to cater the growing needs of an Aspirational India, serving both Individual & Business Client.
About HDB Financial Service
IPO Details, Price movement
Performance Highlights
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Total revenue grew by 14.26% from INR 12,403 Crore in FY23 to INR 14,171 Crore in FY24, driven by a healthy increase in its loan book.
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Profit after tax rose by 25.60% to INR 2,461 Crore in FY24, compared to 1,959 Crore in FY23.
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Increase in operating profit by 25.78% to 3,305 crores.
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HDBFS witnessed a remarkable 42% Y-o-Y growth in disbursements as comparison to FY23.
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HDBFS expanded its presence by increasing its branches from 1,374 in FY22, to 1,492 IN FY23.
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There is increase in AUM from INR 70,084 crore in FY23 to 90,235 crore in FY24.
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Total Income increased by 14% in FY24 and 10% in FY23 Y-o-Y.
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There is decrease in GNPA from 4.99% in FY22 to 1.90% in FY24.
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There is decrease in NNPA from 2.45% in FY22 to 0.63% in FY24.
IPO Plans
As per, The Chief Finance officer of HDFC Bank, Srinivasan Vaidyanathan, has indicated the initial public offerings (IPO) of HDB Financial Services is likely to begin in coming months. According to him, the IPO’s listing requirement is set for September 2025, and the intention is to initiate necessary the necessary activities in the next few months to ensure flexibility and optimal market timing. The HDB Financial Services share price will be closely watched as these plans unfold, with market conditions playing a crucial role in determining the timing of the IPO.
Industry Matrices
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There is a increase in demand for NBFC’s as India’s economy continues to grow at faster rate despite pandemic and global recessions, consistently exceeded 7% since FY 2021-22, with projections indicating similar growth for FY 2024-25.
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Conservative estimates by the International Monetary Fund (IMF) suggest that India will emerge as the world’s third-largest economy by 2027.
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The NBFC sector in India has undergone significant transformations, marked by growth, regulatory changes, and technological advancements.
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The sector has a expected CAGR of 18.5% between 2021 and 2026 for NBFC’s after having challenges.
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Incremental funding requirement (over and above the refinancing of existing/maturing debt) is estimated at around Rs. 3.0 trillion annually in FY2024 and FY2025.
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The Retail AUM of NBFCs (NBFC-Retail; excluding HFCs) continued the growth momentum in Q2 FY2024, expanding 29% YoY.
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As of September 2023, NBFCs in the country have disbursed loans amounting to over 450 billion U.S.D.
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As per ICRA, the NBFC-Retail AUM growth rate in FY23 was 16-18% in FY23 and 12-14% in FY24.
CSR
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As a responsible corporate citizen, HDBFS is dedicated to making a positive impact on the communities where it operates through comprehensive Corporate Social Responsibility (CSR) initiatives.
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Over the year, the Company has expanded its CSR footprint by investing in areas that promote affordable healthcare, safe hygiene, education, livelihoods, and environmental sustainability.
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It has disbursed 29.41 crore to CSR programmes and activities in underserved regions across 129 districts in 22 states and 2 union territories.
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Through 35 focussed interventions, implemented in collaboration with grassroots organisations, over 1,34,000 individuals have directly benefitted, driving transformative change and fostering a resilient society.
Key Initiatives:
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Digital Pre-Approved Offers: Instant loans for eligible customers.
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Aadhaar Card: Loyalty cards for streamlined benefits.
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Jiffy loan: Quick personal loans through digital process and Disbursed in 2 hours.
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WhatsApp Loan Application: Instant loan applications via WhatsApp.
Management Team
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RAMESH GANESAN - Managing Director
Shareholding in the company - 0.09 %
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HAREN PAREKH - Chief Financial Officer
Shareholding in the company - 0.04 %
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DIPTI KHANDELWAL - Company Secretary
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ADAYAPALAM KUMARASWAMY VISWANATHAN - Director
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AMLA ASHIM SAMANTA - Director
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SMITA CAWAS AFFINWALLA - Director
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VENKATRAMAN SRINIVASAN - Director
Dividend Info
The Specific final dividend per share figure for 2024 is Rs. 1.00 & Interim Dividend paid by the company during the year 2024 is Rs. 2.00.
(Data source: Annual Report: Page 293)
Competitors Analysis
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Arohan Financial Services: Unlisted
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Bajaj FinServ : Listed
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Bajaj Finance: Listed
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Cholamandalam Investments and Finance: Listed
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ICL Fincorp: Unlisted
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Hero Fincorp: Unlisted
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Tata Capital: Unlisted
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Maxvalue Credits and Investments: Unlisted
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Motilal Oswal Home Finance: Unlisted
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Muthoot Finance: Listed
Fundamentals
Financials
P&L Statement | 2021 | 2022 | 2023 | 2024 |
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Revenue | 10945.00 | 11306.00 | 12403.00 | 14171.00 |
Other Income | - | - | - | - |
COGS | - | - | - | - |
Gross Profit | 10944.80 | 11306.30 | 12402.90 | 14171.10 |
Total Expense | 6453.40 | 6534.30 | 6151.70 | 5857.00 |
EBIDTA | 4491.40 | 4772.00 | 6251.20 | 8314.10 |
D&A | 107.80 | 98.90 | 111.80 | 145.10 |
EBIT | 4383.60 | 4673.10 | 6139.30 | 8169.00 |
Interest Expense | 3882.90 | 3325.50 | 3511.90 | 4864.30 |
PBT | 500.70 | 1347.60 | 2627.40 | 3304.70 |
TAX | 109.20 | 336.20 | 668.10 | 843.80 |
PAT | 391.50 | 1011.40 | 1959.40 | 2460.80 |
Diluted EPS | 4.97 | 12.80 | 24.76 | 31.04 |
Basic EPS | 4.97 | 12.81 | 24.78 | 31.08 |
Total income | 10,945.00 | 11,306.00 | 12,403.00 | 14,171.00 |
ASSETS
CURRENT ASSETS | 2021 | 2022 | 2023 | 2024 |
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Cash and Cash Equivalents | 753.51 | 477.20 | 395.90 | 647.85 |
Trade Payables | 117.32 | 141.82 | 65.76 | 124.61 |
Inventory | - | - | - | - |
Other Current Assets | 60666.43 | 59768.08 | 68084.05 | 90197.56 |
Total Current Assets | 61,537.26 | 60,387.10 | 68,545.71 | 90,970.02 |
NON CURRENT ASSETS | 2021 | 2022 | 2023 | 2024 |
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Plant Property and Equipment | 91.52 | 78.14 | 122.37 | 162.53 |
Long Term Investment | - | - | - | - |
Other Non Current Assets | 1012.28 | 1560.70 | 1382.31 | 1423.86 |
TOTOAL NON CURRENT ASSSETS | 1,103.80 | 1,638.84 | 1,504.68 | 1,586.39 |
Total Assets | 62,641.06 | 62,025.94 | 70,050.39 | 92,556.41 |
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CURRENT LIABILITES | 2021 | 2022 | 2023 | 2024 |
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TRADW Payable | 334.25 | 246.91 | 291.84 | 509.00 |
Other Current Liab | 53246.40 | 51681.80 | 57643.74 | 77290.94 |
Total Current Liab | 53,580.65 | 51,928.71 | 57,935.58 | 77,799.94 |
NON CURRENTLIABILITIES | 2021 | 2022 | 2023 | 2024 |
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Long Term Debt | - | - | - | - |
Deffered Tax Liab | - | - | - | - |
Other Non Current Liab | 614.16 | 557.50 | 677.74 | 1014.09 |
LIABILITIES
EQUITY | 2021 | 2022 | 2023 | 2024 |
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Share Capital | 789.19 | 790.44 | 791.40 | 793.08 |
Reserves And Surplus | - | - | - | - |
Other Equity | 7657.05 | 8749.29 | 10645.57 | 12949.63 |
Retained Earnings | - | - | - | - |
share Equity | 8,446.24 | 9,539.73 | 11,436.97 | 13,742.71 |
Total Liabilities | 9,060.40 | 10,097.23 | 12,114.71 | 14,756.80 |
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CASH FLOW STAT | 2021 | 2022 | 2023 | 2024 |
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Cash Flow from operating | -341.75 | 1987.10 | -6850.61 | -16736.04 |
Cash Flow from financing | 607.93 | -1499.54 | 5795.99 | 19133.55 |
Cash Flow from investing | 131.38 | -703.28 | 973.32 | 2145.56 |
Net cash flow | 397.56 | -215.72 | -81.30 | 4,543.07 |
Revenue Growth
PAT Growth %
EPS Growth %
TOTAL ASSETS Growth %
QUICK RATIO Growth %
LONG TERM DEBT TO EQUITY RATIO Growth %
Frequently Asked Questions
The lockin period is of 6 months for pre-ipo investors i.e. they cannot sell their shares for 6 months after they get listed. However, they can definitely sell the shares in pre-ipo market before they get listed.
With BharatInvest, you can now invest in unlisted/pre-ipo shares with as low as 25-50k depending upon the share.
- 1. You can download the NSDL or CDSL application and login into the account and check whether the shares have been credited or not.
- 2. Credit of Unlisted Shares/Pre-IPO shares can be checked in brokers application as well but it takes T+2 days to show the shares.
- The value of share in unlisted space is determined in the same way as it is done in listed market. Demand and supply decide the price of any share. If the demand more than the supply, then the prices of the share increases and vice versa.
- When a new shares is introduces in the unlisted space, the value of the company is decided upon the last funding raised by company. If the company hasn’t raised any funding in the past, then the valuation is decided upon the fundamentals of the company.
A Public Unlisted Shares Is Not Listed on Stock Exchange, Where as a Listed Public Company Is Listed On Stock Exchange Such As BSE Or NSE For Trading Of Shares.
If you sell your shares within 2 years, then you will have to pay Short-term Capital gain on unlisted shares. Short-Term Capital Gain is added in your Income. So, as per individual tax slab you need to pay capital gain tax.
If you sell your shares after 2 years, then you will have to pay Long-term Capital gain on unlisted shares LTCG is 12.5% without indexation benefits.
After listing of shares, the unlisted shares which you have bought through unlisted market, will be taxed at listed rates, if sold through exchange. So, taxes of listed market will be applicable. And, to calculate holding time, for determining LTCG or STCG, the purchase date of unlisted shares will be applicable.
Absoluetly NOT! Grey market is all about speculation relation to open price, subscription rate etc. And does not include physical delivery of shares. Whereas in pre ipo market you get to invest in shares much before the ipo too and it involves physical delivery of shares. It is compeletly legal and does not include any such speculation.
Existing stakeholders, promoters or employees who have equity shares of an unlisted company and early investors who wish to get value of their investment.
1. Yes, investing in unlisted shares is undoubtedly legal in India. The trading takes place in the over-the-counter market.