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Indian Express
4 hours ago
- Business
- Indian Express
HDFC Bank Q1 results: Net profit rises over 12%; board clears 1:1 bonus issue, special dividend
HDFC Bank on Saturday announced a 1:1 bonus issue, the first bonus issue from the leading private bank. The board of the bank has also announced a special interim dividend of Rs 5 per equity share. The bank posted a 12.24 per cent rise in net profit at Rs 18,155.21 crore for the quarter ended June 2025 as against Rs 16,174.75 crore in the same period a year ago. The record date for the HDFC Bank bonus issue has been set at August 27, 2025. The estimated date by which the bonus will be credited is 'within two months from the date of approval by the Board of Directors i.e., on or before September 18, 2025,' as per the exchange filing by HDFC Bank. A bonus issue, or bonus shares, is when a company distributes additional shares to existing shareholders free of cost, usually in proportion to the shares they already own. For instance, in a 1:1 bonus, shareholders receive one additional free share for every one they hold. Although the number of shares increases after the bonus issue, the total value of a shareholder's holding remains the same, which results in a lower share price — making the stock more accessible to smaller investors. Moreover, bonus shares are not taxed at the time of issuance in many jurisdictions; tax is usually applicable only when they are sold. The record date for the special interim dividend for determining the eligibility of members entitled to receive the said special interim dividend is July 25, 2025. The special dividend will be paid to the eligible members on August 11, 2025. Shares of the bank closed 1.47 per cent lower at Rs 1957.40 on the BSE on Friday. It has a market capitalisation of Rs 15 lakh crore. Non-interest income of HDFC Bank surged to Rs 21,729.83 crore in the June quarter, largely driven by Rs 9,128 crore in transaction gains from HDB Financial Services' offer for sale. The bank had offloaded part of its stake in the IPO at Rs 740 per share, reducing its holding in the NBFC to 74.19 per cent from 94.32 per cent. The bank has set aside Rs 14,442 crore in provisions, a sharp jump from Rs 2,602 crore in Q1FY25. This includes Rs 9,000 crore in floating provisions and Rs 1,700 crore in contingent provisions. Gross non-performing assets were at 1.40 per cent (Rs 30,740 crore) of gross advances as on June 30, 2025 (1.14 per cent excluding NPAs in the agricultural segment), as against 1.33 per cent as on March 31, 2025 (1.13 per cent excluding NPAs in the agricultural segment), and 1.33 per cent as on June 30, 2024 (1.16 per cent excluding NPAs in the agricultural segment). The bank's average deposits were Rs 26,57,600 crore for the June 2025 quarter, a growth of 16.4 per cent over Rs 22,83,100 crore for the June 2024 quarter, and 5.1 per cent over Rs 25,28,000 crore for the March 2025 quarter. Gross advances were at Rs 26,53,200 crore as of June 30, 2025, an increase of 6.7 per cent over June 30, 2024. Advances under management grew by 8.0 per cent over June 30, 2024. Retail loans grew by 8.1 per cent, small and mid-market enterprises loans grew by 17.1 per cent and corporate and other wholesale loans grew by 1.7 per cent. Overseas advances constituted 1.7 per cent of total advances. The bank's net revenue was Rs 53,170 crore (including transaction gains of Rs 9,130 crore from a partial divestment through an offer for sale in the recent IPO of its subsidiary HDB Financial Services Ltd) for the quarter ended June 30, 2025 as against Rs 40,510 crore for the quarter ended June 30, 2024.
News18
02-07-2025
- Business
- News18
HDB Financial Services Shares Rise After Decent Debut: Should You Buy, Hold Or Sell?
Last Updated: HDB Financial Services' share price extended gains after making a steady debut in the Indian stock market on Tuesday HDB Financial Services' share price extended gains after making a steady debut in the Indian stock market on Tuesday, July 2, 2025. Following its recently concluded initial public offering (IPO), HDB Financial Services shares were listed on both the BSE and NSE at Rs 835, marking a 12.84% premium over the issue price of Rs 740. Post-listing, the stock witnessed further buying momentum, rising to an intraday high of Rs 845.75 on the BSE, gaining over 1% from the listing level. The Rs 12,500-crore IPO was open for subscription from June 25 to June 27. The listing today aligned with Street expectations, supported by the positive trend in the grey market premium (GMP). Analyst Views: What Should Investors Do Now? Prashanth Tapse, Research Analyst at Mehta Equities, said the listing reflected strong investor appetite and was in line with expectations. 'Given the healthy listing and prevailing bullish sentiment, we recommend holding HDB Financial Services shares for the long term. The company is well-positioned to capitalise on India's structural credit growth, especially in the retail and SME segments," Tapse noted. For investors who didn't receive an allotment, Tapse advised accumulating on post-listing corrections, especially during short-term volatility driven by broader market trends. 'HDB Financial Services offers a value-driven investment opportunity with both defensive and growth characteristics — ideal for investors with a 3–5 year horizon," he added. Tarun Singh, Founder and MD of Highbrow Securities, said the nearly 13% listing premium reflected a balanced market view. 'The market has weighed the stability of HDFC lineage against the headwinds facing a maturing NBFC sector. The premium suggests HDB is seen more as a steady compounder than a high-growth play," Singh said. He further added that HDB's performance in translating its pedigree into consistent returns would determine its long-term standing in the market. Brokerage Emkay Global Financial Services initiated coverage with a 'Buy' rating and a June 2026 target price of Rs 900 per share, implying a 22% upside. Emkay expects 20% AUM CAGR and 27% EPS CAGR over FY25–28, backed by a strong origination network, post-IPO capital strengthening, and a supportive interest rate environment. Emkay projects HDB Financial Services to achieve a return on assets (RoA) of 2.7% and a return on equity (RoE) of 17% by FY28. 'With the RBI likely to implement frontloaded repo rate cuts, NIMs could expand, boosting profitability. We estimate HDB can deliver ~20% AUM and ~27% EPS CAGR over FY25–28," said Avinash Singh, Senior Research Analyst at Emkay Global. Disclaimer:Disclaimer: The views and investment tips by experts in this report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
Indian Express
02-07-2025
- Business
- Indian Express
HDB Financial Services' lists at 13% premium over IPO price
Non-banking financial company HDB Financial Services' shares listed at Rs 835 a share on Wednesday, a 13 per cent premium over the issue price of Rs 740 per share, on both the NSE and BSE. HDB Financial Services shares opened at Rs 835 a share on NSE and BSE on Tuesday. The price band of the issue, which closed on June 27, was fixed at Rs 700 to Rs 740 per share. The HDB Financial Services' Rs 12,500-crore initial public offering (IPO), the largest public offering by a non-banking entity in the domestic capital market, got subscribed 16.69 times, with investors bidding for 217.67 crore shares as against 13.04 crore offered. Retail investors showed tepid response to the issue, subscribing 1.41 times only. The qualified institutional buyers (QIB) portion got subscribed 55.47 times while non-institutional investors (NII) portion was subscribed 9.99 times. Employees and shareholders portions were subscribed 5.72 times and 4.26 times, respectively. The issue consists of a fresh issuance aggregating up to Rs 2,500 crore and an offer for sale of up to Rs 10,000 crore by the parent company HDFC Bank. Post the IPO, HDFC Bank's stake in HDB Financial Services will reduce to 75 per cent from the current 94 per cent. Ahead of the IPO opening, HDB Financial Services raised Rs 3,368.99 crore from anchor investors which included Life Insurance Corporation of India, ICICI Prudential Mutual Fund (MF), Nippon Life India MF, BlackRock, Axis MF, Aditya Birla Sun Life MF, UTI MF, Schroder International Selection Fund, Goldman Sachs Funds, among others. HDB Financial Services' IPO is the country's largest issue since Hyundai Motor India Ltd's Rs 27,870- crore share offering last year.
Hans India
01-07-2025
- Business
- Hans India
HDB Financial Services IPO Listing Date & Grey Market Premium (GMP) Explained
HDB Financial Services' Initial Public Offering (IPO) is all set to list on stock exchange (BSE) on July 2, 2025. The issue priced between ₹700 and ₹740 per share, with a lot size of 20 shares. The IPO was oversubscribed 16.7 times. Grey Market Premium (GMP): ₹57 The Grey Market Premium (GMP) for HDB Financial Services shares is ₹57, which suggests that the stock is trading at ₹797 per share in the unofficial market. Estimated Listing Price: ₹797 The estimated listing price of HDB Financial Services shares is ₹797 per share. It is approximately 7.7% higher than the upper issue price of ₹740. How to Check Allotment Status Investors can check their IPO allotment status on the following platforms: BSE : Visit : Visit NSE : Visit : Visit Registrar: Visit Key Takeaways
Business Times
27-06-2025
- Business
- Business Times
HDB US$1.5 billion India IPO sold out as wealthy investors pile in
[MUMBAI] HDB Financial Services' US$1.5 billion initial public offering, one of India's biggest this year, sold out amid demand from wealthy investors seeking to buy a piece of the shadow-lending unit of the country's top private bank. The offering received bids for 242.8 million shares as of Friday (Jun 27) afternoon in Mumbai, versus the 130.4 million shares offered, according to data available on the BSE bourse's website. Individual investors that bid for more than 1 million rupees of shares were the biggest group bidding for the stock. The portion reserved for qualified institutions was also fully subscribed, while the quota for retail investors was slightly short. The share sale comes amid a rebound in the benchmark NSE Nifty 50 Index, and may serve as a barometer of demand for large Indian issuances ahead. The index has come off its correction and is trading less than 5 per cent shy of its peak in September. There are some potentially bigger deals that are expected to take place this year, including those of Tata Capital and LG Electronics Inc's Indian unit. India emerged among world's busiest markets for capital raising in 2024. After a recent lull, block trades, institutional share placements and IPOs are picking up. HDB Financial raised 33.7 billion rupees (S$501.8 million) by allocating shares to anchor investors including Life Insurance Corp of India, the country's biggest insurer, and domestic mutual funds. Funds managed by Morgan Stanley and Allianz were among the global investors. BLOOMBERG
