SMC Global Securities Limited

3️⃣But is HDB doing well financially? Here’s what their FY25 numbers say: → Net interest income rose 18% - ₹7,446 Cr vs ₹6,292 Cr last year. → Total gross loans also grew 18% - ₹1.06 lakh Cr vs ₹90,218 Cr

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

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

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

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

→ 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

This IPO is not just about fundraising It’s HDFC unlocking a hidden engine in its business — and letting investors own a piece of it If you believe in Bharat’s credit story, this might just be a smart bet Watch closely on July 2 #IPO #HDBFinancial #HDFC #StockMarketIndia #IPO #HDBFinancial #HDFC #StockMarketIndia

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

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