If price band is fixed above 330 then it is waste ipo. Join the list of Mahindra Logistics, future supply, Khadim and etc. If price is fixed above Rs.330 means grey market premium will be Rs.30 plus. Mere 10% premium HNI will not participate this issue. They need minimum 25% grey market premium then only they will come with borrowed money and issue will subscribe 200 times plus. Otherwise own fund hni only will participate this issue and subscribe mere 10 to 15 times. 10 to 15 Times hni participation will list bandan bank Rs.15 plus or minus.
Ok, let me put it other way. If you have 50000rs and want to have it in one of the bank say Bandhan bank, icici bank, hdfc bank, indusind bank, sbi. Which bank you will prefer? My guess Bandhan bank would be last choice or no choice.
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March 3, 2018 2:06:32 PM
Top Contributor (400+ Posts, 200+ Likes)
By this logic, no Co-operative Bank should have any deposit. Your choice your preference is not necessarily others also. There are so many factors which cause preference of bank, not only name.
We should not worry how much deposit the bank has or who has deposited but we should worry how much lending it has given, who are the borrowers, can we deposit our money in the bank, etc. These questions will lead to the answer if the ipo can give good return or not. As in the current scenario, banking sector is under scrutiny.
Bandhan @ 333, PE 33 & PB 7 whereas, HDFC Bank available @ PE 30 & PB 5. Then why to risk money in present uncertain market when much bigger & established banks giving performance regularly are available cheaper than a new entrant. If indicated price band 332-333 is correct, then nothing left for listing gains. Clear avoid.