HDB Financial Services , a non-bank subsidiary of HDFC Bank, has announced the grant of Employee Stock Options (ESOPs) ahead of its September-quarter results, as the company's stock continues to trade below its initial public offering (IPO) price.

ESOP Grant Details

The company's Nomination & Remuneration Committee (NRC) has approved the grant of ESOPs under three different plans:

Each option, upon exercise, will be convertible into one equity share of the company. The grant price of ₹739.85 per option is based on the closing price of HDB Financial Services' shares on the National Stock Exchange of India on October 13.

Vesting Schedule

For all three ESOP plans, the vesting of options will commence after one year from the grant date and will occur over a three-year period as follows:

Stock Performance and Q2 Expectations

HDB Financial Services' stock has declined 16% from its listing price since its debut two months ago following a ₹10,000 crore IPO. As the company prepares to announce its September-quarter results, analysts are projecting:

• Loan growth of 13% year-on-year and 2% sequentially
• Margin expansion of 5 basis points
• An increase in credit costs by 10 basis points to 2.6%

The company continues to expand its branch network and digital channels in Tier 2 and 3 cities, indicating a focus on growth in these markets.

Technical Analysis

Technical analysts note that the stock is currently consolidating above the ₹700-740 support zone. There is potential for upside movement to the ₹800-850 range if the stock can sustain above the ₹740 level.

As HDB Financial Services prepares to release its Q2 results, investors will be closely watching for signs of improvement in the company's financial performance and any potential impact on its stock price.

HDB Financial Services , a prominent player in the financial services sector, has announced key dates for its upcoming quarterly results and dividend consideration. The company's Board of Directors is set to convene on October 15 to review and approve the unaudited standalone financial results for the quarter and half-year ending September 30.

Financial Results and Dividend Consideration

The Board meeting will address two primary agenda items:

1. Approval of unaudited standalone financial results for Q2 and H1 FY2023-24
2. Consideration of an interim dividend on equity shares for the financial year 2025-26

Following the Board meeting, HDB Financial Services has scheduled an earnings call with investors and analysts at 6:30 p.m. on the same day, providing an opportunity for stakeholders to gain insights into the company's performance and future outlook.

Trading Window Closure

In compliance with regulatory requirements, HDB Financial Services has implemented a trading window closure:

This measure ensures fair trading practices and prevents insider trading during the sensitive period leading up to the financial results announcement.

Recent Stock Performance

HDB Financial Services' stock has shown some volatility in recent trading sessions:

The stock has experienced notable price points since its listing:

• Highest: Rs 891.90 (July 3)
• Lowest: Rs 728.30 (October 9)

Investors and market analysts will be closely watching the upcoming financial results and any potential dividend announcement, which could impact the stock's future performance.

As the financial services sector continues to evolve, HDB Financial Services' Q2 results and strategic decisions will be crucial in determining its market position and investor sentiment in the coming months.