Latest news with #HDBFinancial
Economic Times
a day ago
- Business
- Economic Times
HDB Financial Services shares in focus as lock-in expiry frees up 23 million shares to trade
Shares of HDB Financial Services are likely to be in focus on Wednesday, July 30, as the lock-in period for certain shareholders comes to an end today, freeing up around 23 million shares of the company, making them available for trading. ADVERTISEMENT This represents about 3% of the company's total equity. Lock-in periods are time-bound restrictions imposed on the sale of shares held by certain categories of shareholders, typically promoters, pre-IPO investors, or employees, after a company is listed. This regulatory mechanism ensures that major stakeholders cannot offload their holdings immediately after listing, thereby providing some stability in the early trading lock-in expiries tend to draw investor attention as the increase in free-floating shares can impact stock liquidity. While the actual effect varies depending on broader market sentiment and company-specific factors, such events are closely tracked by market participants, especially in the early months of a newly listed company's trading cycle. On Tuesday, shares of HDB Financial Services closed flat at Rs 745.05 on the BSE. As of their closing price on Tuesday, HDB Financial shares are trading just 0.6% above their issue price of Rs 740 and nearly 10% down from their listing price of Rs 835. ADVERTISEMENT Earlier this month, HDB Financial Services reported a marginal decline in net profit for the first quarter of FY26, with profit after tax coming in at Rs 568 crore. It was down 2% from Rs 582 crore in the same quarter last year. ADVERTISEMENT However, operationally, the bank delivered a healthy performance, with net interest income (NII) rising 18% year-on-year (YoY) to Rs 2,092 crore, backed by strong growth in advances and a broader increase in interest-earning assets. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
a day ago
- Business
- Time of India
HDB Financial Services shares in focus as lock-in expiry frees up 23 million shares to trade
Shares of HDB Financial Services are likely to be in focus on Wednesday, July 30, as the lock-in period for certain shareholders comes to an end today, freeing up around 23 million shares of the company, making them available for trading. This represents about 3% of the company's total equity. Explore courses from Top Institutes in Please select course: Select a Course Category Data Analytics Public Policy Management Operations Management Technology Cybersecurity Others Data Science Leadership Finance Digital Marketing others MBA Design Thinking Product Management MCA PGDM Degree Artificial Intelligence Healthcare Project Management healthcare Data Science CXO Skills you'll gain: Data Analysis & Visualization Predictive Analytics & Machine Learning Business Intelligence & Data-Driven Decision Making Analytics Strategy & Implementation Duration: 12 Weeks Indian School of Business Applied Business Analytics Starts on Jun 13, 2024 Get Details Lock-in periods are time-bound restrictions imposed on the sale of shares held by certain categories of shareholders, typically promoters, pre-IPO investors, or employees, after a company is listed. This regulatory mechanism ensures that major stakeholders cannot offload their holdings immediately after listing, thereby providing some stability in the early trading days. Historically, lock-in expiries tend to draw investor attention as the increase in free-floating shares can impact stock liquidity. While the actual effect varies depending on broader market sentiment and company-specific factors, such events are closely tracked by market participants, especially in the early months of a newly listed company's trading cycle. Live Events On Tuesday, shares of HDB Financial Services closed flat at Rs 745.05 on the BSE. As of their closing price on Tuesday, HDB Financial shares are trading just 0.6% above their issue price of Rs 740 and nearly 10% down from their listing price of Rs 835. HDB Financial Services Q1 results Earlier this month, HDB Financial Services reported a marginal decline in net profit for the first quarter of FY26, with profit after tax coming in at Rs 568 crore. It was down 2% from Rs 582 crore in the same quarter last year. However, operationally, the bank delivered a healthy performance, with net interest income (NII) rising 18% year-on-year (YoY) to Rs 2,092 crore, backed by strong growth in advances and a broader increase in interest-earning assets. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
6 days ago
- Business
- Economic Times
NSDL IPO shocker: Price band 22% below unlisted market value
Price band raises investor concerns A déjà vu moment: HDB Financial precedent Live Events Grey market signals and market outlook (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel In a move that has caught investors off guard, National Securities Depository Limited (NSDL) has set the price band for its upcoming initial public offering at Rs 760–800 per share, marking a steep 22% discount to its last valuation in the unlisted pricing has sparked disbelief, particularly among those active in the unofficial market, where NSDL shares had been trading at about Rs 1,025 earlier this month. According to UnlistedZone, this represents a 20% fall from the stock's peak of Rs 1,275 in June Rs 4,011.6 crore IPO of NSDL will open for public subscription on July 30 and close on August 1, with anchor bidding set for July 29. The issue will be entirely an Offer for Sale (OFS) of up to 5.01 crore shares by existing shareholders, including IDBI Bank, NSE, Union Bank of India HDFC Bank , and SUUTI. IDBI Bank is offloading 2.22 crore shares, while NSE is selling 1.8 crore is targeting a valuation of around Rs 16,000 crore through the offering. Retail investors will be required to invest a minimum of Rs 14,400 for one lot of 18 shares. The company, which filed its DRHP with SEBI in July 2023 and updated it in May 2025, has trimmed the issue size from 5.72 crore shares to 5.01 crore valuation mismatch has drawn comparisons to the recent IPO of HDB Financial Services, which also shocked investors with a price band well below its unlisted value. HDB Financial Services' IPO was priced at Rs 700–740 per share, a 40% discount to its unlisted market price of Rs 1,225 prior to the announcement. Shares in the unofficial market had peaked at Rs 1,550 in September last the pricing shock, HDB Financial listed on July 2, 2025, at Rs 835 per share, 12.8% above the issue price. Yet, investors who purchased shares at high valuations in the unlisted market suffered shares are trading at a healthy grey market premium (GMP) of Rs 145–155, implying a listing gain of about 18% over the top end of the IPO price band. GMP reflects the difference between the IPO price and the price in the unofficial grey market, though it remains speculative and Rs 800, the IPO values NSDL at a price-to-earnings ratio of 46.6, notably lower than its listed peer CDSL, which trades at a P/E of 66.6. The company's financials remain strong despite a slowdown in primary market activity. In Q3 FY25, NSDL posted a 29.8% year-on-year rise in consolidated net profit to Rs 85.8 crore, while total income increased 16.2% to Rs 391.2 allotment of NSDL shares is expected on August 4, with listing likely on August 6. Investors will now be watching closely to see whether the IPO follows the trajectory of HDB Financial's issue, which overcame initial skepticism to debut at a premium.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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Business Standard
19-07-2025
- Business
- Business Standard
HDFC Bank Q1 results: Net profit up 12.2% Y-o-Y to Rs 18,155 crore
HDFC Bank, India's largest private sector lender, has reported a 12.2 per cent year-on-year (Y-o-Y) increase in net profit to Rs 18,155 crore in the April-June quarter of the financial year 2025-26 (Q1FY26), despite a significant jump in provisions in the quarter, and modest growth in net interest income (NII) due to subdued loan growth. The bank's partial disinvestment in subsidiary HDB Financial Services during the quarter aided to the net profit. It received a net gain of Rs 6,949.27 crore on account of the sale of shares of HDB Financial. Its provisions jumped to Rs 14,441 crore in the quarter, which includes Rs 9,000 crore of floating provisions, and Rs 1,700 crore of additional contingent provisions. 'The bank's credit performance across all segments continues to remain steady, in a credit environment that remains benign. The bank has considered this as an opportune stage to enhance its floating provisions, which are not specific to any portfolio, nor meant for any specific anticipated risks, but act as a countercyclical buffer for making the balance sheet more resilient', the lender said in its statement on Saturday. The lender's NII during the period grew 5.4 per cent Y-o-Y to Rs 31,438 crore, while core net interest margin stood at 3.35 per cent on total assets, reflecting assets repricing faster than deposits, as against 3.46 per cent for the prior quarter ended March 31, 2025. Meanwhile, its end of period deposits stood at Rs 27.64 trillion, up 16.2 per cent Y-o-Y, with CASA deposits growing at 8.5 per cent, and time deposits growing at 20.6 per cent over the corresponding quarter of the previous year. The bank's board also approved issuance of bonus shares in the proportion of 1:1 i.e. one bonus equity share of Re 1 each for every one fully paid-up equity share held as on the record date, subject to statutory and regulatory approvals as applicable, and approval of shareholders of the bank to be obtained by way of postal ballot.
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Business Standard
16-07-2025
- Business
- Business Standard
HDB Financial shares slip 4% post Q1 results; should you buy, sell or hold?
HDB Financial Services share price: Shares of recently listed HDB Financial Services, the non-banking finance subsidiary of HDFC Bank, came under pressure following the announcement of its financial results for the first quarter of 2025–26 (FY26). The company's share price declined 3.66 per cent to ₹810.3 during intra-day trading on Wednesday, after it reported a 2.4 per cent year-on-year (Y-o-Y) drop in net profit to ₹568 crore for Q1FY26, driven by a rise in credit costs. However, market analysts remain optimistic about the company's long-term growth prospects despite the near-term weakness. CATCH STOCK MARKET LIVE UPDATES TODAY HDB Financial Services Q1FY26 results Earlier on Tuesday, July 15, the NBFC posted their first quarterly earnings since their market debut, post-closing hours. During the quarter under review, its net interest income (NII) during Q1FY26 rose 18.3 per cent Y-o-Y to ₹2,092 crore, while non-interest income increased nearly 8 per cent Y-o-Y to ₹330 crore. HDB Financial's credit cost jumped 62.4 per cent Y-o-Y to ₹670 crore in Q1FY26, against ₹412 crore in the corresponding period last year. In Q4FY25, credit cost stood at ₹634 crore. The company's net interest margin (NIM) stood at 7.7 per cent in Q1FY26, up from 7.6 per cent in Q4FY25. Should you buy, sell or hold? Prashanth Tapse, senior vice president, Mehta Equities, noted that investors are booking profits within a very short period due to earnings that disappointed street expectations. 'Despite strong loan and net interest income growth, concerns have emerged regarding asset quality and provisions, which are weighing on profitability. This is the key reason why PAT declined marginally by around 2–3 per cent,' said Tapse. While there may be short-term consolidation in the non-banking financial company (NBFC) sector, Tapse advised long-term investors to hold their positions and consider adding more on every dip. 'The sector has already seen three to four interest rate cuts passed on to customers. This will likely put pressure on net interest margins (NIMs). So for another quarter or two—Q1 and Q2—the NBFC sector as a whole may experience some pressure. All the top five players are expected to feel the impact in terms of growth,' he explained. That said, Tapse believes this presents a great opportunity to accumulate HDB Financial as a long-term investment. He pointed to the historical performance of HDFC Group companies: 'HDFC Bank, HDFC Life, and HDFC AMC all consolidated for years before delivering strong long-term performance. I expect a similar trajectory for HDB Financial.' Echoing similar views, Gaurang Shah, head investment strategist at Geojit, also recommended investors invest in HDB Financial Services from a long-term perspective. 'The results for just one quarter should not be taken into consideration when making long-term investment decisions in the company's shares,' said Shah. Notably, the company's shares listed on the BSE at ₹835 per share on July 2 this year, compared to the IPO issue price of ₹740. For those who missed the HDB Financial Services IPO, Shah suggested that it may be a good opportunity to buy the stock for the long term if the price comes close to the IPO issue price. Notably, analysts at Geojit had recommended investors subscribe to the public issue of HDB Financial Services, citing its diversified lending portfolio, strong parentage support, omni-channel distribution platform, granular lending model, expanding customer base, asset quality, and promising growth prospects. ALSO READ | Here's what technical charts suggest From a technical point of view, Hardik Matalia, derivative analyst, Choice Broking, believes that the HDB Financial stock has immediate support at ₹800, with a stronger cushion placed around ₹777. 'As long as the stock sustains above its IPO price of ₹700, it remains a good candidate for buying on dips. Investors who received IPO allotment and were aiming for short-term gains may consider booking profits at current levels. However, those with a long-term view can continue to hold and look to accumulate further on declines,' said Matalia. For those who missed the IPO, Matalia believes that this range-bound phase offers an opportunity for partial accumulation, with plans to add more on any meaningful corrections. 'Overall, the price action indicates stability around key support zones, making it a stock to watch in the coming sessions,' said Matalia.
