We share with you a new IPO report - on Bandhan Bank. Its a wonderful sector - microfinance - that both provides a wonderful service for small and underprivileged sections of society, and a good return for investors, if managed well .
Do click the link below and read the report for your reading and investment decisions.
- Date 14th Mar; IPO Opens 15-19th Mar at Rs. 370-375
- Large Cap: Rs. 44,780 cr. Mkt cap
- Industry – Commercial Bank
- Valuations: P/E 40.2 times TTM, P/B 4.9 times (Post IPO)
- Advice: SUBSCRIBE
- Overview: Bandhan is a commercial bank focused on serving underbanked and underpenetrated markets in India. Bandhan Bank has the largest microfinance loan portfolio, with Rs. 21,380 crores as of FY17. Bandhan bank has a great brand recall, strong financial performance, good asset quality and an experienced management. It is the new MFI loans leader. Presence in underbanked East and NE regions and universal bank structure are key strengths. At a P/B of 4.93 times (post IPO), the valuation look expensive. However Bandhan has a focus and a leadership position. It also operates in niche geographies.
- Risks: 1) Economically and politically sensitive sector 2) Significant exposure to unsecured loans.
- Opinion: Investors can SUBSCRIBE to this IPO with a 2 year perspective.
Here's to your Happy and profitable investing.
JainMatrix Investments, Bangalore