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RBL Bank IPO – A Grand Revival

Dear Investors,

You need to look at this new offering.

Its the only private bank IPO in 11 years, since Yes Bank.

We've thoroughly analysed it as usual, and find it interesting.

Do read our report before you decide on this opportunity.

RBL Bank IPO – A Grand Revival at https://jainmatrix.com/2016/08/18/rbl-bank-ipo/

  • Date: 18th August 2016
  • IPO price range Rs 224 – 225, Apply from 19-23rd Aug 2016
  • Advice: BUY with a 2 year holding perspective
  • Mid Cap: Rs 7,700 crore Market Capitalization
  • Industry: Bank – Private Sector
  • PE 25.9 times and PB 2.45 times

SUMMARY

  • Overview: RBL is a Kolhapur (Mah.) based private sector, universal, full service bank.
  • Total Income in FY16 was Rs 3,235 cr. Topline and PAT grew 57% and 45.6% CAGR over 5 years.
  • RBL occupies several valuable niches such as (50%) Maharashtra operations; agriculture, rural and microfinance focus; a startup focus in Bangalore.
  • The strategy of high growth, aggressive deposit & loan rates, and low margins is sustainable.
  • With new management since 2010, RBL is in a Grand Revival and a good business trajectory.
  • Why BUY:
    1. RBL has a good record of business so far in terms of growth, nimble business focus, and differentiation.
    2. In terms of valuations, RBL has priced the shares moderately. 3) High quality institutional & PE investors and good management.
  • Key risks: Rural slowdown in Maharashtra and intense competition in BFSI sector.
  • Retail Investors can BUY this IPO with a 2 year holding perspective.

Your comments and feedback will be appreciated.

Happy investing,

Punit Jain
JainMatrix Investments

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Comments 1

Guest - rakesh on Friday, 19 August 2016 17:40

I agree. but is their any currently listed bank at same valuation?

I agree. but is their any currently listed bank at same valuation?
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Tuesday, 16 July 2019

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