At the upper price-band of Rs 358, issue is priced at 5.1x FY17 book value. Based on the management’s successful track-record of scaling up the business over the years, generating high returns (better return on average equity than peers), focus on optimising costs, well established framework for controlling asset quality and well-thought future expansion strategy, it advises to subscribe for the long term.
Antique Stock Broking
Given the strong presence in niche customer segments, AU SFB''s profitability will be remained superior to most conventional banks. Despite the migration to SFB, it estimates that AU will report trough return on equities of around 17 percent in FY18 this will recover to 20 percent by FY20. This is significantly better than its listed peers which are currently reporting single digit RoEs. As such, valuations at 3.2x book on FY20 are reasonable, and investors can expect strong upside over the next few years.
IIFL
At the upper end of price band of Rs 355-358, the company is being valued at 5.3x FY17 P/ABV. This valuation, more than being palatable, offers a material upside post listing. It recommends subscribe.
SMC
The research house has assigned 2.5 ranking out of 5, which is partly fair ranking. Check out comparison with peers.
312. P M| Link| Bookmark|
June 30, 2017 2:33:56 PM
(1100+ Posts, 1100+ Likes)
It''s clear that this IPO will list at premium to issue price. Maximum listing gains 10-20%. Since issue size is big 20 times subscription is considered as poor subscription as compared to last huge size IPO. So muted listing gains expected as nothing is left on table by promoters.Badly priced quality IPO.
AU SMALL FINANCE BANK LTD (Subscription Till 30/06/17 1:50 pm,
QIBÂ Â Â Â Â Â 8.5713x 16.4276 NIIÂ Â Â Â Â Â 3.3497x 6.8517 RIIÂ Â Â Â Â Â 2.1266x 2.3043 EMPÂ Â Â Â Â Â 0.849x 0.9245 TOTALÂ Â Â Â Â Â 4.1349x 7.1405
It will not be as hit as CDSL But definitely better than Tejas & Eris. It has very strong fundamentals & growth prospects. Listing gain might be around 15-20% only but 1 year target will be around 50-60%.