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Wednesday, June 28, 2017

AU Small Finance Bank is entering the primary market with an IPO of 5.34 crore equity shares of Rs.10 each which will open for subscription from today

The IPO is offered in the price band of Rs.355 to Rs.358 per share. The IPO wpuld remain open for subscription till Friday, Jun 30, 2017.

About AU Small Finance Bank

AU Small Finance Bank, formerly AU Financiers, has transitioned from an asset financing NBFC providing loans for vehicle purchase, MSMEs and SMEs to a small finance bank (SFB) effective 19th April 2017.

The bank is having 269 branches and 121 asset centers across West and Central India, mainly in Rajasthan, Gujarat, Maharashtra, Madhya Pradesh, Chhattisgarh, with focus on low income and middle income group (LIG and MIG) customers. In June 2016, company sold its lucrative, high-growth, and current investor favourite mortgage (home loan) business, of Rs. 1,500 crore AUM, for approximately Rs. 950 crore, to enable its transition to SFB. 

Business is concentrated in its home geography, with 54% of gross AUMs in single state of Rajasthan

A look at earnings and financial ratios

In FY17, company’s total income grew 36% YoY to Rs.1,430 crore, while net interest income (NII) grew 41% YoY to Rs. 917 crore.

After accounting for provisions and write-offs of Rs. 77 crore and exceptional gains of Rs. 670 crore on sale of housing finance and other smaller businesses (insurance broking, micro finance), company reported PAT of Rs. 843 crore. Adjusting for this one-time gain, FY17 PAT rose came to Rs. 326 crore, thus resulting in EPS of Rs. 11.74, up from FY16’s Rs. 9.28.

The company has a healthy capital adequacy ratio of 23.21%, vis-à-vis regulatory requirement of 15%. Net interest margins (NIM) of the companh is 9.67%. However despite this appearing to be strong, it is expected to shrink as the banking norms become applicable to the company going forward. Also, Gross NPA at 1.61% and net NPA at 1.05%, at 120 days past due, as of 31-3-17 which is at higher end

Return on Net Worth (RoNW) of 21.7% and Return on Assets (RoA) of 3.4% are also quite impressive.

As on Mar 2017, the company's networth is around Rs.2000 crores which is double from last year. Book value of the compang is around Rs.70 per share

Analysis of Valuation

The shares are offered in a price band of Rs.355 to Rs.358 per equity share. If historic Book Value (BV) and EPS is considered, the shares are offered at an PE ratio of around 31 times which is at higher end. Even where book value is considered the Price to Book Value works out to be 5.1 times

All in all, the company is offered at an aggressive price. Although the euphoria in IPO market may sail this through at a premium listing and also considering that the company has done well in NBFC business, it might turn out to be decent in the long run, investors would need to maintain a watchful eye on it if subscribed. May be a good one to invest for listing gains initially and then re enter upon dips

Sunday, June 25, 2017

Tentative Listing dates of IPOs in June 2017

Tejas Networks IPO
27th June – Listing on NSE & BSE

Eris LifeSciences IPO
29th June – Listing on NSE & BSE

30th June – Listing on NSE only

AU Financiers (Small Bank) IPO
07th July – Listing on NSE & BSE

03rd July – Listing on NSE & BSE

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Saturday, June 24, 2017

The equity shares of Tejas Networks Limited is all set to debut its shares on the exchanges from June 27, 2017

Tejas Networks IPO was oversubscribed 1.88 times, opened for subscription during June 14-16, 2017.

Eris Lifesciences IPO Allotment Status is  declared and can be checked from link given below :

Check out the link given below to check Eris Lifesciences IPO Allotment Status!

Central Depository Services (India) Ltd. has earned the distinction of becoming the most subscribed IPO of the decade was the most subscribed in over a decade. The IPO was subscribed more than 170 times the number of shares offered with the offer getting overwhelming response from across all the categories of investors: QIB, HNI and Retail alike

The book running lead managers to the offer include Haitong Securities India Pvt Ltd., IDBI Capital Markets and Securities Ltd and YES Securities (India) Ltd. CDSL is the second largest depository in the country. Retail individual investors, who are eligible for up to Rs 2 lakh worth of shares, applied for 23.83 times the shares on offer

CDSL also offers facilities to issuers to credit securities to a shareholder's or applicant's demat accounts; KYC services in respect of investors in capital markets to capital market intermediaries; and facilities to allow holding of insurance policies in electronic form to the holders of these insurance policies of various insurance companies.
Finalisation of Basis of Allotment: On or about June 29, 2017
Initiation of refunds: On or about June 29, 2017
Credit of Equity Shares to demat accounts: On or about June 29, 2017
Commencement of trading of the Equity Shares on the Stock Exchanges: On or about June 30, 2017
QIB: 4.68 times
HNI: 0.45 times
Retail: 3.51 times
Employee: 0.86 times
Overall: 3.29 times
Issue opens on: Jun 28, 2017
Issue closes on: Jun 30, 2017
Face Value: Rs 10 Per Equity Share
Price Band: Rs.355 to Rs.358 per equity share
Bid Lot: 41 Equity Shares and in mutiples thereof
Listing At: BSE, NSE
QIB: 148.71 times
HNI: 563.03 times
Retail: 23.83 times
Employees: 1.46 times
Overall: 170.16 times

Wednesday, June 21, 2017

CDSL IPO Subscription Status Day 3: Wednesday, 21st June 2017, 3.00pm QIB : 115.66x,
HNI : 289.21x
Retail : 18.77x
Employee : 1.33x,
Overall : 101.51x

Monday, June 12, 2017

Issue opens on: Jun 14, 2017
Issue closes on: Jun 16, 2017
Issue size: Rs.450 Crs vide Fresh Issue and Rs.326 Crs through Offer for Sale
Price Band: Rs.250 to Rs.257 per equity shares
Bid Lot: 55 Equity Shares and in multiples thereof

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