IDFC Bank debuts strongly at Rs70.50 on NSE
06 November 2015
IDFC Bank, the demerged banking entity of infrastructure finance company IDFC, made its debut on the exchanges on Friday, listing at Rs70.50 a share on the National Stock Exchange.
The newly formed bank, which started its operations on 1 October with book value of Rs39.11 per share, was expected to list around Rs60 by many analysts. CLSA had estimated the fair value of IDFC Bank at Rs60-65 per share.
The lender started its operation with a balance sheet of Rs73,447 crore and a net worth of Rs13,322 crore. Its loan book is mainly dominated by infrastructure loans. Over the next five years, the bank will focus on increasing the share of non-infrastructure loans.
Its parent IDFC holds a 53 per cent stake and has to reduce it to 40 per cent over next few years as per the guidelines of RBI.
The Reserve Bank of India had granted IDFC Ltd a universal banking licence in July last year.
IDFC Bank shares closed at Rs70.40 apiece. Shares of IDFC closed 6.65 per cent lower at Rs55.40 as compared to a flat Nifty.