Big News :- HDFC to launch HDFC AMC IPO in May 2018
Housing Development Finance Corp. and Standard Life will raise Rs 3,600 crore by selling 12% stake in HDFC AMC through initial public offering in May, valuing the company at around Rs 30,000 crore. HDFC owns 57.34% in the venture while Standard Life owns 38.24% and remaining is with others !!
- Bandhan Bank IPO Currently some scandals in PSU banks affects all PSU banks. Somehow it is affecting whole finance sector of Indian markets. At some point, private banks, private NBFCs, micro finance have some pressure. At present if you want to invest in finance sector then only one choice is available is private banks. At private banks, still asset quality is good compare to PSU banks. But we will see some pressure in earnings of private banks in next few quarters. Good facts of Bandhan Banks: - When RBI granted banking license to Bandhan Bank in 2015 at that time many big players are also in competition i.e. Birla, Reliance etc. But only Bandhan and IDFC got licenses. IDFC got license because of IDFC NBFC and government holding. IDFC is failed to get benefits of license because of good governance. Bandhan Bank got license though Birla, Reliance rejected. There is something in Bandhan Bank though they succeeded to get license. - Good management. - Bandhan Bank is mostly in micro finance, SME, individuals. All previous micro finance companies like Equitas, Ujjivan, AU Small Bank gave good returns to investors on listing and after listing. So, micro finance sector is promising in India. - Low NPA 1.6 compared to another private bank. Though it is new in market obviously NPA should low. It will remain low for next few years because of good management. - Good growth in loans and network within last 3 years. Concerns about Bandhan Bank IPO: - Asking P/BV, P/E is high compared to big private banks i.e HDFC, YES, INDUSIND. P/E is comparable to micro finance companies like equitas, ujjivan, au small. P/BV is high. - Market condition is not favorable. - Finance sector is losing its shine because of PSU Banks scandals. Many fund managers are pulling out money from banks, nbfcs. It is big concern. - US $ is getting strong. Fed already declares 3 – 4 times rate increase. What to do? Apply or Not? - I suggest to watch Anchor investors list. Watch its demand in Anchor investors. Which big investors (national, international) funds are participating in this IPO. - Closely see NII, QIB participation. I will provide feedback next week about Anchor investor’s participation. When market condition is favorable this will give good return but at present investors have to wait for returns.
*BANDHAN BANK LTD.IPO* *FIRST DAY SUBS.FIGURE AT 05:25 P.M.* QIB 1.26X** NII 0.01X RII 0.12X TOTAL 0.42X **Excluding Anchor Total No.of FORMS : 90,354 *Apps Wise : 0.09X*
@anilsinghviCNBC Follow Follow @anilsinghviCNBC More Both Bharat Dynamics and Bandhan bank #IPO are AVOIDABLE from listing gains view due to expensive valuation and volatile market conditions