Can HDB Financial Defy the Mega IPO Curse of Rs 10,000 Crore Disasters?

India's mega IPO market has seen a concerning trend with six out of the last eight IPOs exceeding Rs 10,000 crore resulting in significant losses for investors. The average negative return within six months of listing is 20%, which worsens to 25% over a year. Notable examples include Paytm, Reliance Power, and LIC.

Despite this trend, HDB Financial Services had a successful debut, listing at a premium and receiving positive analyst ratings. Backed by HDFC Bank, the company aims to target underserved markets and capitalize on India's credit growth potential.

Analysts project strong growth for HDB Financial, with positive AUM and EPS forecasts. The company's resilience during economic downturns and its profitable growth strategy set it apart from previous mega IPO failures.

However, regulatory challenges could impact the company's future, with potential changes in ownership structure looming. Investors are advised to consider accumulating HDB Financial stock on market corrections for long-term value.

While the outcome remains uncertain, HDB Financial's solid foundation and business model offer a glimmer of hope in a market plagued by IPO disappointments.

According to the source: The Economic Times.