Equitas Small Finance Bank Listing Today: Anil Singhvi lays out investor strategy
Equitas Small Finance Bank will be listed on Monday and Zee Business Managing Editor Anil Singhvi had advised investors to avoid this public offer citing that the offer price was slightly on a higher side. What are the expectations in this offer and what should the investors who are keen on this listing do to maximise gains
Equitas Small Finance Bank will be listed on Monday and Zee Business Managing Editor Anil Singhvi had advised investors to avoid this public offer citing that the offer price was slightly on a higher side. What are the expectations in this offer and what should the investors who are keen on this listing do to maximise gains.
The Market Guru said that he expected listing of this stock near the issue price or slightly below. He said that the Bank could be listed around Rs 30-31. He said that the investors were advised to avoid this public issue not because there are any problems with the bank. He said that the valuations are Okay – neither too expensive nor too cheap. The strategy at that point-in-time was based on the market situation and there were other banking stocks that were placed better, the Managing Editor said. There was no reason why an investor would buy shares of an IPO at this valuation, he further said.
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It would have made sense to invest in this share had it been available at a discount of 15 to 20 per cent. This was the reason why it was recommended to not invest in this issue.
After the issue, the share of promoters will be reduced to 82 per cent and the promoters will be required to reduce the stake to 40 per cent by 4 September 2021 as per the rules prescribed by the Reserve Bank of India.
Though the company has been seeking an extension from the banking regulator. If the other listed company which is Equitas is merged with the Equitas Small Finance Bank, then the promoter holding is reduced significantly.
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If the investors have still put money in this stock, then it was their choice. He however advised them to stay invested in this stock as the returns will come only after 2021. He said that a 1-3 year view should be taken on this stock.
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10:16 AM IST