HDB Financial Services becomes eighth most valuable NBFC with nearly Rs 70,000-crore m-cap

HDB Financial bets on granular risk strategy post-strong market debut

HDB Financial Services Ltd has emerged as the eighth most valuable non-banking financial company (NBFC) in India following its market debut, with shares listing at a 13 percent premium over the issue price.

On July 2, the stock opened at Rs 840 per share, taking the company’s market capitalisation to Rs 69,625 crore. The stock closed 13.55% higher at Rs 840.25 with the m-cap reaching Rs 69,700 crore.

Bajaj Finance remains the most valuable NBFC with a market capitalisation exceeding Rs 5.81 lakh crore, followed by Jio Financial Services and Cholamandalam Investment and Finance Company Ltd, valued at Rs 2.08 lakh crore and Rs 1.37 lakh crore respectively.

Other major players in the NBFC space include Shriram Finance (Rs 1.33 lakh crore), Muthoot Finance Ltd (Rs 1.06 lakh crore), SBI Cards & Payment Services (Rs 90,481 crore), and Aditya Birla Capital (Rs 72,200 crore).

The IPO of HDB Financial Services, which was open for subscription from June 25 to June 27, witnessed robust demand with a subscription of nearly 16.7 times.

Domestic brokerage Emkay Global has initiated coverage on the company with a bullish stance, highlighting its highly diversified and granular lending model. The firm boasts a customer base of over 1.9 crore and has weathered multiple credit cycles, including the pandemic, building its franchise from the ground up.

Emkay Global emphasised the company’s minimal concentration risk—its top 20 accounts make up just 0.34 percent of total assets under management—and issued a 'Buy' rating with a target price of Rs 900 per share. This implies a potential upside of 22 percent from the IPO's upper price band of Rs 740.