HDB Financial shares, back at IPO price, have an important session on Monday; Here's why

Shares of HDB Financial Services Ltd., the non-bank lending arm of India's largest private lender HDFC Bank Ltd., will be in focus on Monday, September 29, as its shareholder lock-in period comes to an end. One of the biggest IPOs of the year, HDB Financial will see its three-month shareholder lock-in period end on Monday.

According to Nuvama Alternative & Quantitative Research, as many as 2.28 crore shares of HDB Financial Services, will free up for trade on Monday. The total number of shares that will free up for trade, amount to 3% of its outstanding equity.

It must be noted that the end of the shareholder lock-in period does not mean all the shares will be sold in the open market, but they only become eligible to be traded.

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Based on Friday's closing price, the number of shares that will free up for trade, amount to ₹1,723 crore.

Having listed on July 2, shares of HDB Financial had made their stock market debut at a small premium to their issue price, made a new post-listing high of ₹891.9, but it has been a slow grind down for the stock since then.

The stock is back at its IPO price of ₹740 per share, closing only marginally above it on Friday.

For the June quarter, HDB Financial reported a 18.3% year-on-year jump in its Net Interest Income, but provisions also went up by over 60%, thereby impacting its net profit.

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All eyes will also be on the company's shareholding pattern at the end of the September quarter and its business update, if it does share one, for the July-September period.

Shares of HDB Financial Services ended 1.5% lower on Friday at ₹755.85. The stock has declined 3% in the last one month.