HDB Financial Services Limited Unlisted Shares– Research Report
i) HDB Financial Services (HDBFS) is a leading non-bank financial company (NBFC) that meets India’s growing aspiring needs and serves retail and commercial clients. It is a systemically important non-bank financial company (“NBFC”) that does not accept deposits.
(ii) The company was established in 2008 and is a well-established company with a strong capitalization. HDBFS is accredited with a CARE AAA & CRISIL AAA long-term debt rating and its banking instrument and an A1 + rating for short-term debt and commercial securities, making it a strong and reliable financial institution.
(iii) Company products: The current product portfolio consists of three main categories, ie Loan, Repayment Based Products and BPO Services. Loans
Consumer loans – The company provides white loans (washing machine and refrigerator), brown loans (eg television, audio equipment and similar home appliances, etc.) and digital products (eg mobile phones, computers and laptops). The company also provides household loans
Consumer Loans Portfolio includes:
1. Gold loan
2. Consumer Durable loan
3. Auto loans
4. Personal loans.
5. Loan against MFs.
Business loans:
SMEs need working capital financing, the purchase of a new offer or the construction of a new plant. The company offers secured and unsecured loans to small and medium-sized enterprises.
Asset finance:
The company provides loans to buy new and old cars like cars that we can supply to creditors such as trucks, tractors and so on.
Payment based products:
The company is a registered corporate insurance agent that sells HDFC Life and HDFC Ergo Life and General Insurance products to clients.
BPO services:
Collection service – The company has an agreement with HDFC to collect fees from creditors. The company has built 15 call centers throughout the country with a capacity of 5,000 seats. (iv) Infrastructure:
As of March 31, 2020, the company has 1,468 branches in 1,070 cities in India.
HDB Financial Services Limited Unlisted Shares Details:
| Total Available Shares: | 500 |
| Face Value: | ₹ 10 Per Equity Share |
| ISIN: | INE756I01012 |
| Lot Size: | 25 Shares |
| Current Unlisted Share Price: | ₹ 875 Per Equity Share |
Promoters And Management:
Shareholding Pattern:
Financials of HDB Financial Services Limited Unlisted Shares:
| Year | Revenue | PAT | AUM | EPS | Book Value |
| 2014 | 1688 | 209 | 13560 | 4 | 31 |
| 2015 | 2527 | 349 | 19290 | 7 | 44 |
| 2016 | 3302 | 534 | 25906 | 8 | 50 |
| 2017 | 5714 | 698 | 34277 | 10 | 68 |
| 2018 | 7061 | 951 | 44469 | 12 | 79 |
| 2019 | 8724 | 1149 | 55455 | 15 | 91 |
| 2020 | 10756 | 1004 | 55930 | 13 | 102 |
| 2021 | 10944 | 391 | 61560 | 5 | 107 |
In fiscal year 2019-20, the loan disbursement amounted to 29,853, compared to 31,654 last year.
2. Assets under management (AUM) as at 31 March 2020 increased to 58,832.75 from last year’s 55,425.16.
Secured loans – 44,662.81 (76%)
Unsecured loan – 13,768.14 (24%)
3. As of March 31, 2020, the Company’s outstanding debts amounted to SEK 47,093.93, which it repaid to public sector banks, private sector banks, mutual funds, insurance companies, financial institutions, and so on.
In the FY19-20 HDBFS increased 19000 Cr from various Institutional Investors . No interest or principal payments are required for term loans and are not paid as of March 31, 2020. This means that the company is financially sound and has no risk to the liquidity of the business.
Future Prospects of Industry
Between fiscal 2021 and fiscal 2024, the Indian credit market is expected to return strongly and grow by 13-15%.
The IFC’s “Financing India’s MSMEs” report, published in November 2018, lists approximately 47.6 million SMEs that are not registered and are therefore unlikely to receive any formal source of debt. In addition, out of the total debt in this sector of INR 69.3 trillion, only INR 10.9 trillion was satisfied with formal resources. This provides financial institutions with a great opportunity to create a subscription and collection model that meets the business needs of this segment of creditors.
Today, the NBFC uses advanced technologies that will result in a bright future for the NBFC. Technologies such as artificial intelligence have prepared lenders to evaluate the customer’s perspective and follow alternative credit score models. That the future of the NBFC lies in technology.
Strengths of HDB Financial Services Limited Unlisted Shares
HDB Financial Services has a strong brand and an extensive distribution network, especially in rural and small towns.
The company automates the loan application process to make informed loan decisions in the first phase using various tools such as CRM, Rule Engine, Bureau Integration, Deviations Management and more. create a seamless path for the customer and lead to financial inclusion.
Tier 1 and Tier 2 companies are above the RBI standard, ie 13.44 and 5.45.
Q- How to Buy HDB Financial Services Limited Unlisted Shares
Please find below the procedure for buying HDB Financial Services Limited Unlisted Shares at IPO INVEST.
- 1. You confirm booking of HDB Financial Services Limited Unlisted Shares with us at a trading price.
- 2. You provide your client master report (ask the broker if not available) along with PAN Card and Cancelled Cheque in case you are not transferring funds from the bank account as mentioned in the CMR Copy. These are KYC documents required as per SEBI regulations.
- 3. We will provide the bank details.
- 4. You need to transfer funds in that account.
- 5. Payment has to be done in RTGS/NEFT/IMPS CHEQUE TRANSFER. No CASH DEPOSIT.
- 6. Payment has to be done from the same account in which shares are to be credited.
- 7. We will transfer the shares in 24 hours if funds are credited before 2 pm.
Important Note: Please note that the lock-in period for selling HDB Financial Services Limited Unlisted Shares is 6 months after listing. Hence you can’t sell HDB Financial Services Limited Unlisted Shares which you bought in Pre-IPO for 6 months after its listing. i.e. You can sell it only after 6 months calculated from the listing date. For any queries, please contact us at [email protected]
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