SMC Global Securities Limited

[7] What about Suspensions or Withdrawals of Ratings? This doesn’t always mean something is wrong. Sometimes the company chooses not to renew it. But sometimes it’s a red flag: → Loan default → Lack of transparency → Trouble in operations Always check the reason stated in

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So it’s a trade-off: value vs performance

6️⃣ How does it compare with other NBFCs like Bajaj Finance and Chola? → HDB is cheaper in terms of valuation (its price-to-book ratio is lower) But its profitability and asset quality are not as strong as Bajaj Finance, which has better returns and cleaner books

4️⃣What makes HDB a strong NBFC? → It’s highly diversified - no product is more than 25% of its loan book. → That means if one loan segment underperforms, the others can balance it out

→ It also enjoys a AAA credit rating and borrows money at just 7.9% interest — thanks to HDFC Bank’s brand power That’s a big advantage

5️⃣Let’s talk about the risks HDB has 2.26% gross NPAs that’s its bad loan ratio It also lends a lot in the unsecured space — where defaults are more likely during tough times If there's a slowdown or job loss cycle, those unsecured loans could turn risky fast

7️⃣IPO details you should know: • Issue size: ₹12,500 Cr • Price band: ₹700 to ₹740 per share • Lot size: 20 shares (minimum ₹14,800 investment) • Issue period: June 25 - June 27 • Listing date: July 2 This is one of the biggest NBFC IPOs we’ve seen in recent years

8️⃣So… should you apply for this IPO? You may consider it if you want: • Exposure to rural credit growth • A solid brand-backed NBFC • Lower valuation than market leaders But be cautious about asset quality, and HDFC’s future involvement post stake cut