Price Band
- Rs
750-775
Issue Date -
October 25, 2016 to October 27, 2016
Lot Size -
19
Important
Take Away
·
Total issue size Rs 3100 crore
·
Price band Rs 750 to 775
·
Dilution 23.45 to 23.95%
·
Fresh equity issue no OFS
·
Pre issue capital Rs 126.9 crore
·
Post issue capital Rs 167 crore
·
Pre issue Net worth Rs 2204 crore
·
Post issue net worth Rs 5345 crore
(on upper band)
Company's net profit growth was 61% CAGR
for last 4 yrs. FY16 PAT at Rs 327 cr & Q1FY17 at Rs 96 crore
Company has RoA of 1.19% and RoE of 17.4%
NIM at 2.98% with lowest cost of borrowing
at 8.65% led by high reliance on NCD 53% of borrowing, followed by deposit 25%,
20% CP, 10% NHB and 7% Bank loan
·
The company has 47 branches in
28 location with top 7 cities contribute 70% of business.
·
Geographic mix include 40%
north, 30% west and 30% south.
·
The company has 62% Home loan,
18% LAP, 9% construction loan and 11% LTD and corporate loans.
·
The company has 70% Loan toward
Housing loan and 30% toward Non Housing segment
·
The company has 45% self-employed
customers and 55% salaried customers
·
Cost to income ratio stands at
25% and operational expenses to a good assets at 0.73%
·
65% of retail loans are for
resale properties and rest is for under construction properties
·
The company has 85% of its book
in retail remaining 15% in corporate
In LAP segment 85% customers are self-employed
with an age of 44 to 55 years and ticket size of Rs 54 lakh, LTV is 46%, and
85% are self-occupied residential properties.
The company has 70% loans in variable rate
The company source 55% of business from DSAs
The company has around 1078 DST which
company source from team lease and on payroll of team lease
The company has less than 10% presence in
rural
The company has leverage of 15x which is
very high
Asset quality of the company is robust with
GNPA at 0.22% with NNPA at 0.14%. However 76% of the book has less than 2 year’s
tenure since disbursement. On 2yr lag basis GNPA stands at 0.6%
Valuation: The Company has book value of Rs
169 for FY16 which is 4.5x p/be Pre issue. Post issue BVPS is Rs 320 which is
2.4x and on FY17E BVPS is Rs 342 which is 2.3x p/be and on FY18 BVPS is Rs 377
which is 2x p/bv.
Valuation
Chart
