Mitesh_Nifty

HDB Financial Services: From HDFC Bank's Hidden Franchise to India's Most Watched NBFC HDB Financial Services: From HDFC Bank's Hidden Franchise to India's Most Watched NBFC Institutional Research Note Executive Summary For nearly two decades, HDB Financial Services (HDBFS) remained one of India's least discussed yet most important retail lending franchises. Backed by HDFC Bank, the company quietly built a nationwide lending platform focused on small business owners, self-employed professionals, commercial vehicle operators, tractor owners, first-time borrowers and underserved customers across semi-urban and rural India. Today HDB serves approximately 22.9 million customers through 1,730 branches spread across 1,161 cities and towns . Its loan book exceeds ₹1.18 lakh crore and it maintains one of the most diversified retail lending franchises in the country. Despite reporting record disbursements, rising profitability, improving asset quality and strong ca...

The Great Shift in Wealth Creation: Have IPOs Stopped Leaving Money on the Table? For decades, equity investing followed a relatively simple pattern. Entrepreneurs built businesses, listed them on stock exchanges, and public market investors participated in the next phase of growth. Some of the greatest wealth creation stories in India emerged from this model. Investors who bought into quality companies after listing often enjoyed extraordinary returns over the following decade or two. Today, however, the investing landscape appears fundamentally different. From Face Value to Premiums to Sky-High Valuations There was a time when shares were issued close to their face value. As capital markets matured, companies began issuing shares at premiums to reflect their business potential and earnings power. This was a natural progression. The latest phase, however, is characterized by IPOs being priced at valuations that often assume years of future growth in advance. Companies now reach the pu...