Rajesh Agarwal of AUM Capital recommends buying Reliance Industries with target at Rs 1039 and stop loss at Rs 960 and L&T Finance Holdings with target at Rs 178 and stop loss at Rs 163.
Chandra Shekhar Ghosh, MD and CEO of Bandhan Bank, calls FY18 a watershed year for the bank given the positive investor response to its IPO and improvement in asset quality, growth and profitability in each quarter.
"Bandhan’s unique business model returning it high NIMs of 9.5-10 percent has ensured rapid brick and mortar expansion does not affect profitability," says Sumit Bilgaiyan, Founder of Equity99.
The market breadth was in favour of the declines with 526 stocks advancing while 1207 declined and 293 remained unchanged. On the other hand, in the BSE, 862 stocks advanced and 1751 declined and 186 remained unchanged.
After opening at Rs 487.33 on the National Stock Exchange, the stock price touched an intraday low of Rs 455.
The market breadth was in favour of the advances with 1331 stocks advancing while 392 declined and 301 remained unchanged. On the other hand, in the BSE, 1868 stocks advanced and 704 declined and 138 remained unchanged.
The stock price has opened at Rs 487.33 on the National Stock Exchange, against issue price of Rs 375 per share.
The market rallied more than half a percent in pre-opening trade, tracking positive global cues on easing trade war tensions.
In the ongoing season where most IPOs have barely managed to get subscriptions, the IPO market may turn to be less exciting for those looking to make quick gains or listing gains.
The bank proposed to raise Rs 4500 crore from the IPO, primarily to raise capital base and allow part exit of one of its existing shareholders IFC.
The bank is aimed to raise Rs 4,413.4 crore - Rs 4,473 crore at a price of Rs 370-375 per share, respectively.
One can look at HAL for listing gains, said G Chokkalingam, Founder & MD, Equinomics Research & Advisory.
Bandhan Bank's Rs 4,473 crore initial public offer was subscribed 42 percent on the first day of bidding today. The portion reserved for qualified institutional buyers (QIBs) was oversubscribed 1.26 times, non institutional investors 1 per cent and retail investors 12 percent.
Since the issue is priced to perfection it leaves little on the table for retail investors but it good for long-term investors, said Sanjiv Bhasin, Executive VP-Markets & Corporate Affairs, IIFL.
The capital raised via IPO will give bank strength to grow its business, said Chandrashekhar Ghosh, MD and CEO, Bandhan Bank.
The price band of the issue is Rs 370-375 per equity share with face value of Rs 10 each
The issue is primarily to comply with the RBI’s new bank licensing norms that require the entity to get listed within three years of start of banking operations.
The bank raised the amount by issuing 3,57,84,147 equity shares to 65 anchor investors at higher end of price band.
Out of total fund raising, the bank already raised Rs 1,342 crore by issuing 3,57,84,147 equity shares to 65 anchor investors at Rs 375 per share.
Even as the banking sector is reeling from the Rs 12,700 cr-PNB scam, there is some good news as the newly formed Bandhan Bank is set to come up with one of the biggest IPOs among banks in a long time.
IFC and IFC FIG would offer 1.4 crore and 75.65 lakh shares for sale, respectively.
Kolkata-based lender Bandhan Bank will be raising up to about Rs 4,473.75 crore from the public through sale of 11.93 crore equity shares
The price band of the much-awaited IPO has been finalised at Rs 370-375 per share and the bid would remain open from March 15 to 19.
The bank which mainly lends to the micro finance institutions (MFIs) also sees MSME and affordable housing segments as a huge lending opportunity, said Chandra Shekhar Ghosh, CEO, Bandhan Bank.