SMC Global Securities Limited

[5] The Real Power is in the Movement, not just the Rating Would you trust a company that dropped from AA+ to A? Or a small-cap that steadily rose from BBB- to A-? Ratings tell you where the company is. But rating movement shows you where it's going

If you’re a serious investor, you can’t afford to ignore this goldmine Use credit rating reports to: ✅ Deepen your research ✅ Verify your thesis ✅ Discover risks early ✅ Spot silent turnarounds It’s free. It’s verified. It’s underused Make it your edge

8. Common Reader Queries: 🟡Why is debt info different in annual vs credit rating reports? Because credit reports often include off-balance sheet liabilities too 🟡Should I fully rely on credit ratings? No — but it’s a powerful addition to your toolkit 🟡Are these reports

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

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

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

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

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

→ 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