Free stock tips & updates : IDFC's banking division is going to be listed on bourses on 6th November this year. The current shareholders of the non-banking financial company will get 1 share of the banking entity for every share held.
 |
| Free stock tips |
On Monday's closing price of Rs 63, the stock of IDFC traded at a price-to-book value (P/BV) of one. It is possible that the banking entity upon listing may fetch a higher multiple, considering past examples. For instance, Kotak Mahindra BankBSE -0.81 % & Yes BankBSE -1.01 %, which started banking operations in 2004, traded at a price-to-book value of over three at the time of the starting 3 years.
IDFC Bank will provide a good investment opportunity although returns will be low in the starting few years because of the investment in manpower, technology & infrastructure. The pace at which the bank would attract retail customers & reforms in the power sector will be key triggers that investors should watch out for in future.
No comments:
Post a Comment