Latest news with #NBFC
New Indian Express
5 hours ago
- Business
- New Indian Express
HDB Financial sets Rs 700–740 price band for Rs 12,500-crore IPO
MUMBAI: HDB Financial Services, a retail-focused NBFC owned by HDFC Bank, has set a price band of Rs 700–740 for its Rs 12,500-crore IPO, marking a steep premium over face value but a sharp discount to grey market rates. At the upper end of the price band, the company will be valued at USD 7.5 billion, compared to the grey market valuation of USD 10.5 billion. The mega issue, the largest from the NBFC space, comprises a Rs 2,500 crore fresh issue of shares of Rs 10 face value and Rs 10,000 crore in offer-for-sale by parent HDFC Bank, which currently holds 94.3% of the company. The remaining 5.7% shares are held by the employees trust and employees through ESOPs, Chief Financial Officer Jaykumar Shah told TNIE at the press meet announcing the issue. Post-issue, HDFC Bank will continue to hold 75% of the equity. HDB Financial, founded in 2008, has been growing rapidly. In FY25, its loan book, 73% of which is secured, crossed the Rs 1-trillion mark, from which it earned a net income of Rs 2,180 crore, up 29% from the previous fiscal. However, asset quality remains a concern, with gross NPAs at 2.3% and net NPAs at 1% of assets. The IPO is also intended to comply with the RBI's October 2022 directive requiring large NBFCs to go public by September 2025. When asked about launching the IPO during a choppy market and at a discount to the grey market price, CEO Ramesh Ganesh said the valuation was arrived at after discussions with investors and bankers. 'We've been doing roadshows for quite some time now, meeting investors globally and locally. We believe the value is derived by talking to investors and bankers, and we worked with them to arrive at the value,' Ramesh said.
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Business Standard
7 hours ago
- Business
- Business Standard
HDFC Bank may pocket ₹9,373-cr profit from HDB Financial Services IPO
HDB Financial Services IPO: India's largest private sector lender, HDFC Bank, is set to gain a whopping ₹9,373 crore profit from the Initial Public Offering (IPO) of its non-banking financial company (NBFC) arm, HDB Financial Services, scheduled to open on June 25, 2025. Notably, the HDB Financial Services IPO is slated to be the largest public offering in India's NBFC sector. That said, the Red Herring Prospectus (RHP) filed by the company reveals that the offering comprises a fresh equity issuance worth ₹2,500 crore, alongside an offer for sale (OFS) in which HDFC Bank will divest part of its stake (135.13 million equity shares) valued at ₹10,000 crore. The price band for the HDB Financial Services IPO has been set between ₹700 and ₹740 per share. If the public issue is fully subscribed at the upper end of the range, HDFC Bank stands to raise ₹10,000 crore from the OFS. Meanwhile, HDFC Bank's average acquisition cost for the shares is ₹46.4 per share, bringing the total acquisition cost for the OFS shares to approximately ₹627 crore, according to the RHP. Thus, the transaction is expected to generate a profit of approximately ₹9,373 crore for HDFC Bank, including payable taxes, if applicable. Currently, HDFC Bank holds a 94.3 per cent stake in HDB Financial Services, which is anticipated to reduce to around 70 per cent post-IPO. Despite the reduction in ownership, HDB Financial Services will remain a subsidiary of HDFC Bank. HDB Financial Services IPO details The public offering of HDB Financial Services will remain available for subscription from Wednesday, June 25 - Friday, June 27. HDB Financial Services has set the price band ₹700-740 per share, with a lot size of 20 shares. A retail investor would require ₹14,800 to bid for one lot or 20 shares of HDB Financial Services IPO. Meanwhile, for a maximum bid of under ₹200,000, retail investors can bid for 260 shares, or 13 lots, in this IPO. HDB Financial Services IPO grey market premium (GMP) today The unlisted shares of HDB Financial Services are commanding a solid premium in the grey markets on Friday. According to sources tracking unofficial market activities, the unlisted shares of HDB Financial Services were trading at ₹840 per share, reflecting a grey market premium of ₹100 or 13.51 percent over the upper end of the issue price. HDB Financial Services IPO allotment date, listing date Following the closure of the subscription window, the basis of allotment of HDB Financial Services IPO shares is expected to be finalized on Monday, June 30. The successful allottees will receive the company's shares in their demat accounts on Tuesday, July 1. Shares of HDB Financial Services are slated to make their D-Street debut by listing at BSE and NSE tentatively on Wednesday, July 2. About HDB Financial Services HDB Financial Services, a subsidiary of HDFC Bank, is one of the leading, diversified retail-focused NBFCs in India in terms of Total Gross Loan Book size, according to the CRISIL Report. Classified as an Upper Layer NBFC (NBFC-UL) by the Reserve Bank of India (RBI), the company operates through three key business verticals—Enterprise Lending, Asset Finance, and Consumer Finance. HDB Financial Services also provides business process outsourcing services, including back-office support, collections, and sales support services to its promoter.
Mint
12 hours ago
- Business
- Mint
THESE 6 NBFCs offer up to 9.10% interest on fixed deposits — check the list
At the time of opening a fixed deposit with an NBFC (Non-Banking Financial Corporation), it is advisable for depositors to compare the interest rates offered by different institutions. Typically, NBFCs offer slightly higher interest rates on their term deposits than what the banks offer. An FD can be opened by a resident Indian citizen, NRI, HUF, public or private firm, company or other entities like association of persons. Here we give a lowdown on FD interest rates offered by the NBFCs I. ICICI Home Finance: This NBFC offers 7.65 percent (yearly income plan) on 39-month and 45-month tenure deposits. These rates came into force on May 19, 2025. Early withdrawal: In case of an emergency, one can withdraw the deposit prematurely but only after paying a minimal fee. However, there is no premature withdrawal allowed in the first 3 months of deposit. The minimum deposit amount for opening an FD could be ₹ 10,000 (annual/cumulative income plan), ₹ 20,000 (quarterly income plan) and ₹ 40,000 (monthly income plan). II. Bajaj Finserv: Bajaj Finserv offers interest up to 7.30 percent per annum to senior citizens and 6.95 percent to regular citizens on tenure between 12-60 months. The deposit amount should be more than ₹ 15,000. III. Muthoot Capital: FD with Muthoot Capital offers interest of 7.90 percent on 12-month deposit, 8.70 percent on 24-month deposit, 9.10 percent on 36-month deposit, 8.90 percent on 48-month deposit and 8.90 percent on 60-month deposit (annual scheme). NBFC Interest (%) Tenure (months) ICICI Home Finance 7.65 percent 39,45 Bajaj Finserv 7.30 percent* 12-60 Muthoot Capital 9.10 percent 36 Shriram Finance 8.90 percent* 36, 50, 60 Sundaram Finance 8 percent* 24, 36 PNB Housing Finance 7.5 percent 60 (Source: Company websites; *For senior citizens) IV. Shriram Finance: Shriram finance offers maximum interest of 8.40 percent to depositors. Women depositors are offered an extra 10 basis points and senior citizens are given an extra 50 basis points. So, overall depositors can earn up to 9 percent per annum. V. Sundaram Finance: Sundaram Finance offers up to 8 percent to senior citizens and 7.50 percent to regular citizens on fixed deposits on tenure of 24 and 36 months. These rates came into force on May 1, 2025. On a tenure of 12 months, the NBFC offers 7.20 percent and 7.70 percent to regular and senior citizens, respectively. The minimum deposit is ₹ 10,000. VI. PNB Housing Finance: This institution offers up to 7.50 percent per annum on a 60-month fixed deposit. For all personal finance updates, visit here
Mint
14 hours ago
- Business
- Mint
Muthoot Finance, BEL to MCX: 19 Nifty 500 stocks hit 1-year highs this week amid geopolitical uncertainty
Stock market today: The Indian stock market remained range-bound this week as tensions in West Asia continued to keep investor sentiment fragile toward risky assets. The conflict between Iran and Israel, which showed no signs of de-escalation as it entered its eighth day, has pushed crude oil prices higher and dampened sentiment in India. Crude prices jumped nearly 3% on Thursday after Israel reportedly bombed nuclear targets in Iran, prompting retaliatory missile and drone strikes by Iran, including an attack on an Israeli hospital overnight. With prices staying elevated, crude is set to end the week with healthy gains, marking its third straight weekly advance. Meanwhile, all eyes are on the White House as President Donald Trump weighs launching direct military strikes on Iran, with a decision expected within two weeks. In response, Russia has warned the United States against taking military action, adding to the geopolitical uncertainty. While the heightening geopolitical tensions keep the markets wary, the lack of domestic triggers has also failed to provide fresh momentum for the bulls. Meanwhile, rich valuations in the mid- and small-cap segments have raised caution among investors, resulting in sharp corrections over the past few sessions." Foreign portfolio inflows have also been unsupportive, fluctuating throughout the week. While domestic institutional investors have offered some support, it hasn't been enough to lift the markets decisively higher. Amid ongoing market volatility, 19 stocks from the Nifty 500 index managed to touch fresh 52-week highs this week. Notably, most of these names came from the mid- and small-cap segments, outperforming the broader market. NBFC stocks have led the rally, boosted by the RBI's surprise 50 basis point cut in the repo rate and a 100-basis point reduction in the CRR. This has improved investor sentiment, with expectations that enhanced system liquidity will drive a sharp uptick in vehicle loans. Additionally, the hike in loan-to-value (LTV) ratio for gold loans has fueled a rally in gold-focused NBFCs. Scrip Name 52-week high price Muthoot Finance ₹ 2,669.90 Authum Investment ₹ 2,591.80 Au Small Finance Bank ₹ 808 Aditya Birla Capital ₹ 259.42 Max Financial Services ₹ 1,606.10 Navin Fluorine International ₹ 4,795.50 Multi Commodity Exchange ₹ 8,029.50 Redington ₹ 309.95 Bharat Electronics ₹ 407.50 Solar Industries ₹ 17,300 Lloyds Metals & Energy ₹ 1,545.50 Max Healthcare ₹ 1,256.20 Intellect Design Arena ₹ 1,255 Karur Vysya Bank ₹ 253.50 Narayana Hrudayalaya ₹ 1,957 Laurus Labs ₹ 683 JK Cement ₹ 6145 The Ramco Cements ₹ 1,082.50 Manappuram Finance ₹ 284.90 Source: Trendlyne Select defence and pharma stocks have also continued their upward momentum. In the previous trading session, NBFC stocks like Muthoot Finance, Authum Investment & Infrastructure, Aditya Birla Capital, and Max Financial Services hit their respective 52-week highs. Other stocks that touched their one-year peaks this week include Navin Fluorine, MCX, Redington, defense majors like Bharat Electronics and Solar Industries, as well as Lloyds Metals & Energy, Max Healthcare, Karur Vysya Bank, Intellect Design Arena, Laurus Labs, JK Cement, The Ramco Cements, and Manappuram Finance. Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said, 'Nifty, which has been trading within the 24500-25000 range for about a month now, is likely to remain within this range in the near term. The upper side of the range will be broken only on news of de-escalation of the Israel-Iran conflict or an abrupt end to the war.' There is uncertainty on this. The lower side of the range is unlikely to break since big buying, particularly by domestic institutions, will emerge on dips. If the war lingers and crude rises beyond $85, the lower band of the range will be broken. "A distinct feature of the market trend visible in yesterday's trade was the weakness in the broader market. While Nifty remained almost flat, SMIDs cracked, with the small-cap index correcting sharply by 2%. This trend of weakness in the broader market is likely to continue since they are excessively valued, and the ongoing risk-off can lead to further selling in this segment. Money may move from the overvalued SMIDs to the fairly valued, safe large caps in financials, industrials, autos, and real estate," he further added. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Time of India
18 hours ago
- Business
- Time of India
HDB Financial Services IPO: HDB Financial Services' Rs 12,500-crore IPO to open on June 25
The lender posted a consolidated profit after tax of ₹2,175.9 crore in FY25 against ₹2,460.8 crore in FY24. The consolidated revenue from operations went up to ₹16,300.3 crore from ₹14,171.1 crore a year ago. HDB Financial Services, HDFC Bank's NBFC arm, is launching its ₹12,500-crore IPO on June 25, with a price band of ₹700-740 per share. The IPO, closing on June 27, includes a fresh issue of ₹2,500 crore and an offer for sale of ₹10,000 crore by HDFC Bank. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: The ₹12,500-crore IPO of HDB Financial Services, the arm of HDFC Bank , will open for subscription on June 25 at a price band of ₹700-740 per non-banking finance company (NBFC) has filed the Red Herring Prospectus (RHP) for the issue with the Registrar of Companies on Thursday, as per an exchange filing from the issue will close on June 27. Anchor investors will bid for the shares on June offer will consist of a fresh issue of shares worth ₹2,500 crore, and an offer for sale of shares of ₹10,000 crore from the promoter - HDFC Bank The issue - the largest by an NBFC - will also be the largest IPO in India since Hyundai Motor India's ₹27,870 crore offering in October last lender posted a consolidated profit after tax of ₹2,175.9 crore in FY25 against ₹2,460.8 crore in FY24. The consolidated revenue from operations went up to ₹16,300.3 crore from ₹14,171.1 crore a year ago.
