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[HDBFS] HDB Financial Services IPO (2020) Review & Guide

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HDB FINANCIAL SERVICES IPO

HDB Financial Services IPO – So hello friends, do you guys want to invest money in HDB finance services IPO, but you don’t know much about its IPO. So now you need to worry, I will give you detailed information about HDB financial services IPO.

So friends, let us tell you that HDB financial services are the most growing company of HDFC bank group, which gives about 26% returns every year to its investor based on the record so far.

Because HDFC has started the HDB financial services company of its group for loan purposes only so as to earn maximum profit. HDB is a loan provider company that gives loans to people from every sector, even less interest than other banks.

And friends, let us tell you that since the HDFC group launched the HDB bank in the market, since then it has grown very fast till date, the people who had invested money in HDB finance have grown very fast. If I tell you an on average return, people who have invested money in HDB in the last 2 years have got 26% returns.

So, friends, we are going to give you information about HDB financial services IPO, so read this article completely so that you will know more about HDB financial services. how much money is going to be raised through HDB financial services IPO from an investor. And also we know HDB financial services IPO related information.

How much money HDB can raise through IPO.

So friends tell you, HDB financial services will raise about ₹ 10,000 cr from an investor in this IPO.
Because HDB is giving good returns to its investor every year, so everyone wants to invest in HDB IPO.

HDB Financial Highlights.

PARTICULAR2015-162016-172017-182018-192019-20
Total revenue (in ₹ cr)3,302.025,714.547,061.998,724.8110,756.47 cr.
Profit before Tax817.81 1,058.591,464.521,724.061,464.48 cr
Profit after Tax534.41698.77951.741,153.241,004.85 cr.
Assets under Management25,906 34,27744,46955,42558,833 cr.
Shareholders’ Funds3,561.80 5,362.906,202.237,178.488,017.80 cr
Borrowings19,612.15 25,287.0534,980.9745,105.1049,804.09 cr
Earnings per Share (₹)7.649.6412.1814.7112.78
Book value per Share (₹)50.87 68.7379.2291.36101.80

HDB ANNUAL REPORT PDF (2019-20) – PDF DOWNLOAD NOW

About HDB Financial Services

  • HDB Financial Services is a group company of HDFC.
  • HDB Financial Services is established in 2007 by HDFC bank.
  • HDB is Non-banking finance company
  • HDBFS is started only to provide all types of loans.
  • Currently, the total branches of HDBFS are 1468 In India.
  • During FY20, HDBFS Company has allocated ` 26.5 crores in diverse socially-responsible projects across 32 districts in 12 states.
  • HDBFS in last 4-year revenue increased by 2.5% and profit increase by 3.5 %
  • HDBFS is a safe company for investment because of its parent company HDFC bank.
  • HDBFS total revenue in FY 2019-20 ₹ 10,756.47 cr. and total profit after tax ₹1,004.85 cr
  • The share of HDFC was listed in 1995 and the people who invested in it got 3 times of their investment
  • The total share of HDB is ₹78.29 crore. where HDFC holds 95.87% stakes shareholder.
  • HDB Financial Ltd share is managed by Bank of America and Morgan Stanley

HDBFS Loan Type :

  • Personal loan
  • Commercial vehicle loan
  • Car loan
  • Business loan
  • Consumer durable loan
  • Gold loan
  • Medical loan
  • Loan against mutual fund
  • Loan against shares
  • Loan against Kishan Vikas Patra
  • Loan against NSC
  • Credit card balance transfer availability

Company overview

HDB Financial Services Ltd. (‘the Company’), incorporated in Ahmedabad, India, is a Systemically Important
Non-Deposit taking Non-Banking Financial Company (‘NBFC’) as defined under section 45-IA of the Reserve
Bank of India (‘RBI’) Act, 1934.
The Company provides lending services and business process outsourcing services. The Company also
provides services related to the marketing and promotion of various financial products.
The Company’s registered office is situated at Ahmedabad, India, while its corporate office is located in
Mumbai, India. The Company is a subsidiary of HDFC Bank Limited.

What is an IPO? ( Initial Public Offering)

HDB Financial Services IPO

So friends, if you do not know what an IPO is, then let us tell you that when a company wants to expand its business and needs money, then that company releases its shares to the public for the first time.  And fixing the price of 1 share and according to the amount of money that they deposited in that company, the shares of the company are given to them, the entire process is called IPO.

HDBFS IPO – Issue Details:

ISSUE BY -:HDFC BANK
Issue Type100% Book Built Issue IPO
Issue Period2020
Price Brand₹ 1232 per Equity Share
Fund Size₹ 10,000 cr
Book value per Share (₹) (2019-20)101.80
Maximum Bid amount for Retail₹ 2 Lakhs
RegistrarLink Intime India Pvt. Ltd
Listed onNSE & BSE
Share manage byBank of America and Morgan Stanley
Earnings per Share (₹) (2019-20)12.78
Official websitewww.hdbfs.com

HDBFS REGISTRATION AND OTHER DETAILS:

CIN numberU65993GJ2007PLC051028
Registration DateJune 04, 2007
Name of the CompanyHDB Financial Services Limited
Category/Sub-Category of the CompanyNon-Banking Financial Company
Address of the Registered office and
contact details
Radhika, 2nd Floor, Law Garden Road, Navrangpura,
Ahmedabad – 380 009. Tel: +91 79 48914514
Whether listed company
Yes/No
. Equity Shares – not listed
. Debentures and Subordinated Bonds are listed on
Bombay Stock Exchange
. Commercial Papers are listed on National Stock exchange
Name, Address and Contact details of
Registrar and Transfer Agent, if any
For Equity Shares, Subordinated Bonds, Debentures
and Commercial Papers:
Link Intime India Pvt. Ltd.
C 101, 247 Park, L B S Marg,
Vikhroli (West), Mumbai – 400 083
Email : [email protected]
Tel No: +91 22 49186000

Stakeholders Relationship Committee

The Board of Directors constituted the Stakeholders Relationship Committee as per the provisions of
Section 178(5) of the Companies Act, 2013.
Composition:
The composition of Stakeholders Relationship Committee of the Company as on March 31, 2020, is
as under:

Name of the MemberCategory
Dr. Amla SamantaChairperson of the Committee, Independent Director
Mr. Jimmy TataMember, Non-Executive Director
Mr. G. RameshMember, Managing Director & Chief Executive Officer

Shareholding pattern as at March 31, 2020

Name of ShareholderNo. of equity shares heldPercentage
HDFC Bank Limited75,05,96,67095.30
Others3,69,82,9864.70
Total (Issued & Paid-up Shares)78,75,79,656100.00

Should you invest in this IPO?

So friends tell you that if you do not want to take too much risk, then you can invest money in this IPO, because if you look at the performance of the last few years of this IPO, then this IPO will give 15 to 20% constant to every investor. Returned, then we can say on the basis that this IPO is best for long term investment, because in the long term this IPO will give you a very good return with an interest rate of 15%.

Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of `₹ 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

HDBFS PORTFOLIO

Let us tell you that in 2017 HDFC life insurance company was listed in the stock exchange, which is the third-largest company of HDFC group, followed by HDFC Asset Management Company, the fourth largest HDFC asset management company in the year 2018 IPO. Done, and now in 2020 HDB FINANCIAL SERVICES IPO has been LISTED in STOCK EXCHANGE which is the 5th largest company of HDFC group.

And friends, for your information, let us know that HDBFS Bank has increased by ₹ 58,833 cr under Asset Under Management with 26% growth in the financial year 2019-20. Which was Rs 55,425 cr in the last year i.e. the financial year 2018-19? after paying tax to the financial year 2019-20 HDB Financial Services, net profit is Rs 1004.85 cr. Was done Which is Rs 148 cr less than the last financial year 2018-19. And friends I confirmed to you that this information official gave in HDBFS financial year report.

HDB ANNUAL REPORT PDF (2019-20) – PDF DOWNLOAD NOW

HDB FINANCIAL SERVICES IPO
MY LOAN STATEMENT

HDB Financial Services Company earns the most money from commercial vehicles loan, construction equipment loan, because I myself took a commercial vehicle loan from this company which I got at 11.15% interest rate, and I am depositing about Rs. 76,000 thousand every month. I do in HDB Bank, as you can see in the image. So you guys can guess from this how much HDB FINANCIAL SERVICES are earning,

How many branches of HDB in India

HDB FINANCIAL SERVICES IPO

Currently, the total branches of HDBFS are 1468 In India.

StateBranches
Himanchal Pradesh21
Punjab70
Chandigarh5
Uttarakhand16
Haryana 63
Delhi44
Uttar Pradesh153
Rajasthan115
Bihar32
Jharkhand 25
West Bengal76
Gujarat122
Madhya Pradesh79
Chhattisgarh36
Silvassa1
Odisha27
Maharashtra138
Telangana51
Goa 3
Karnataka63
Andra Pradesh83
Kerala43
Tamil Nadu179
Puducherry3
Meghalaya1
Assam18
Tripura1

How to Apply in HDB Financial Services IPO

So friends, if you want to apply for HDB Financial Services IPO, first you have to open a Demat Account, with the help of which you can buy and hold HDB STOCK,

Friends, there are many banks in the market such as ICICI, SBI BANK, AXIS BANK, KOTAK MAHINDRA BANK, HDFC. From where you can get your DEMAT ACCOUNT OPEN, but if you people open your DEMAT ACCOUNT by a bank, then the account opening charge can be minimum Rs 7000 to 8000 and also if you buy a share and hold it in your Demat account. Even if you do, you will have to pay a charge.

But there are solutions, from which you can open your Demat account for very little money, that too for only Rs 300 and apart from that you do not have to pay any charge. That is the way the Android app is absolutely safe.

1. Zerodha Mobile App

Bankers

  • Axis Bank * Bank of Baroda * Bank of India * BNP Paribas * Canara Bank * Central Bank of India * Deutsche
    Bank * Federal Bank * HDFC Bank * HSBC * ICICI Bank * Indian Bank * IndusInd Bank * Jammu & Kashmir
    Bank * JP Morgan Chase Bank * Karnataka Bank* Karur Vysya Bank * Kotak Mahindra Bank * Punjab National
    Bank * State Bank of India * Union Bank of India

Registrar & Share Transfer Agent

M/s. Link Intime India Private Limited
C 101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai – 400 083

Board of Directors

  • Mr. Aditya Puri – Chairman & Non-Executive Director
  • Mr. Jimmy Tata – Non-Executive Director
  • Ms. Smita Affinwalla – Independent Director
  • Dr. Amla Samanta – Independent Director
  • Mr. Venkatraman Srinivasan – Independent Director
  • Mr. Adayapalam Viswanathan – Independent Director
  • Mr. G. Ramesh – Managing Director & Chief Executive Officer

Key Managerial Personnel

  • Mr. G. Ramesh, Managing Director & Chief Executive Officer
  • Mr. Haren Parekh, Chief Financial Officer
  • Ms. Dipti Khandelwal, Company Secretary

HDB Financial Services Office Details

Registered Office

Radhika, 2nd Floor, Law Garden Road,
Navrangpura, Ahmedabad – 380 009
Tel No.: +91 79 48914514
Website: www.hdbfs.com Email: [email protected]
CIN: U65993GJ2007PLC051028

Corporate Office

Ground Floor, Zenith House,
Keshavrao Khadye Marg, Mahalaxmi,
Mumbai – 400 034
Tel No.: +91 22 49116300
Fax: +91 22 39586666

Debenture Trustees

M/s. IDBI Trusteeship Services Limited
Asian Building, Ground Floor, 17, R. Kamani Marg,
Ballard Estate, Mumbai – 400 001
Tel.: +91 22 40807001, Fax: +91 22 66311776,
Email: [email protected]

M/s. Axis Trustee Services Limited
Ground Floor, Axis House, Wadia International Centre,
Pandurang Budhkar Marg, Worli, Mumbai – 400 0025.
Tel.: +91 22 62300446, Fax: +91 22 62300700,
Email: [email protected]

Income from BPO services and other financial charges

Income from BPO services comprises of sales support services, back office, operations, processing
support, running collection call centers, and collecting overdue amounts from borrowers. Performance
obligations are satisfied over time and revenue is recorded on a monthly basis.

Income from direct assignment

Gains arising out of direct assignment transactions comprise the difference between the interest on
the loan portfolio and the applicable rate at which the direct assignment is entered into with the assignee,
also known as the right of excess interest spread (EIS). The future EIS basis the scheduled cash flows on
the execution of the transaction discounted at the applicable rate entered into with the assignee is recorded
upfront in the statement of profit and loss. EIS evaluated and adjusted for ECL and expected prepayment.

Earnings per share

The Group reports basic and diluted earnings per equity share. Basic earnings per equity share have been
computed by dividing net profit/loss attributable to the equity shareholders for the year by the weighted
an average number of equity shares outstanding during the year. Diluted earnings per equity share have been
computed by dividing the net profit attributable to the equity shareholders after giving the impact of dilutive
potential equity shares for the year by the weighted average number of equity shares and dilutive potential
equity shares outstanding during the year, except where the results are anti-dilutive.

Accounting for HDB Employee Share-based Payments

In accordance with a resolution approved by the shareholders, the Group has reserved shares, for an issue to
employees through the ESOP Scheme. On the approval of the Nomination and Remuneration Committee (NRC),
each ESOP scheme is issued. The NRC has approved stock option schemes ESOP-8 on 14 July 2015,
ESOP-9 on 18 October 2016, ESOP-10 on 13 October 2017 and ESOP-11 on 15 January 2019. Under the
term of the schemes, the Group may issue stock options to employees and directors of the Group, each of
which is convertible into one equity share.
Such options vest at a definitive date, save for specific incidents, prescribed in the scheme as framed/approved
by the NRC. Such options are exercisable for a period following vesting at the discretion of the NRC, subject
to a maximum of two years from the date of vesting for ESOP-8 and a maximum of four years from the date
of vesting for ESOP-9, ESOP-10, and ESOP-11.

HDB Financial Services Limited Financial Performance

Your Directors have pleasure in presenting the Thirteenth Annual Report on the business and operations of your
A company together with the audited accounts for the Financial Year ended March 31, 2020.

(₹ in crore)

Particulars2018-192019-20
Total Income8,724.8110,756.47
Total Expenditure (excluding depreciation)6,938.839,182.33
Profit/(Loss) before Depreciation & Tax1,785.981,574.14
Less: Depreciation61.92109.66
Profit before Tax1,724.061,464.48
Tax Expense570.82459.63
Profit after Tax1,153.241,004.85
Other Comprehensive Income (net of tax)(3.43)(55.03)
Total Comprehensive Income after tax1,149.81949.82
Appropriations from Profit after Tax:
Transfer to Reserve Fund under Section 45-IC of the RBI Act, 1934230.65200.97
Dividend Paid54.81141.43
Dividend Tax thereon11.2729.08
Balance carried forward to Balance Sheet 853.08578.34

HDBFS Company posted total income and net profit of 10,756.47 crores and 1,004.85 crores, respectively, for the
financial year ended March 31, 2020, as against 8,724.81 crores and 1,153.24 crores respectively, in the previous
year. HDB Company has transferred an amount of ` 200.97 crores to Reserve Fund under Section 45-IC of the RBI
Act, 1934.
Dividend

Conclusion

So, friends, I hope you will like this information and solve your queries. As much information as we have received about the IPO of HDB FINANCIAL SERVICES, we have tried to give you information.

Friends, if the information related to HDB FINANCIAL SERVICES IPO is found to be useful, then share this information as much as possible and support us so that we continue to provide you more good information.

Thankyou

FAQ

Q1. Will HDFC bank shareholders get HDB shares?

Ans- The answer is YES

Q2. Who is the CEO of HDB ?

Ans – Mr.G.Ramesh

Q3. What is HDB Full Form?

Ans – HDB- Housing and Development Board

Q4. What is full form of IPO?

Ans – Initial Public Offering

Q5. HDB Financial Services Parent Company?

Ans- HDFC

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