Stock markets in India are presently trading marginally higher. Sectoral indices are trading on a mixed note with stocks in the healthcare sector and metal sector witnessing maximum buying interest. Telecom stocks are trading in the red.
The BSE Sensex is trading up 65 points (up 0.2%) and the NSE Nifty is trading up 25 points (up 0.2%). The BSE Mid Cap index is trading up by 0.8%, while the BSE Small Cap index is trading up by 1.1%. The rupee is trading at 64.80 to the US dollar.
In the news from the IPO space, Kolkata-based private lender Bandhan Bank made a stellar debut on bourses today. The scrip of the company, which recently concluded its IPO subscription offer, got listed at Rs 499, a 33% premium to its issue price of Rs 375.
To give you a bit of the bank’s history, its parent company, Bandhan Financial Services (BFSL) was a NGO providing microfinance to economically disadvantaged women in rural West Bengal. It started the microfinance business in 2006. On August 23, 2015, when BFSL, transferred its entire microfinance business to Bandhan Bank, it was India’s largest microfinance company by the number of customers and size of loan portfolio.
Bandhan Bank and IDFC Bank were the only two entities to get the RBI’s banking licenses in 2014.
To know more about the company, you can read our IPO analysis of Bandhan Bank (subscription required).
At the time of writing, Bandhan Bank share price was trading at Rs 477 on the NSE.
Speaking of IPOs, the demand for IPO’s has reached sky-high levels. This euphoria is something similar to what was seen in 2007-08.
At times like this, it pays to follow a merit-based selection – primarily including valuation, business, and management quality – to go about investing in IPOs. If it means going against the herd, so be it. And going by recent past, this strategy has been proven to be successful more often than not.