DEVELOPMENT CREDIT BANK LTD - IPO
Type of Issue : Book Built
Issue Opens: 29 September, 2006
Issue Closes: 06 October, 2006
Issue Size : 71,500,000 (No. of Shares)
Lower Price Band : Rs.22
Upper Price Band : Rs.26
Application Multiple: 250 and in multiples there off starting with atleast 250 shares.
Maximum Shares: 3750 (for Retail)
Information URL : http://www.dcbl.com
Prospectus URL : http://www.sebi.gov.in/dp/dcbdraft1.pdf
ISSUE Description:
Company Background
DCB is a new private sector bank which has embarked on a revitalization plan. The Bank has a new management team and a Board of directors committed to improving the Banks financial performance. The key team is headed by Mr. Nasser Munjee, Chairman, who has over 28 years in the financial service industry and was previously CEO of IDFC. Mr. Gautam Vir, MD , has over 26 years of experience in the banking industry and was previously with Citibank. The bank has customer base of approximately 5,95,000 retail customers. It has 72 fully networked consumer branches, 101 ATMs and online Internet Banking. The Bank has a committed Promoter - Aga Khan Fund for Economic Development
The bank has 3 main business lines viz., :Consumer banking, Commercial banking and Treasury operations
Objects of the Issue:
The Bank believes that additional capital is required for future asset growth and in compliance with regulatory requirements. The objects of the issue are mainly to augment the Bank’s Tier I capital base to meet future capital adequacy requirements arising out of growth of business.
Key Financials for year ended March 31, 2006
The bank has incurred a net loss in each of the last three financial years.
Income : Rs. 802.90 Million
Profit after Tax / (Loss) brought forward : Rs.(1657.54) Million
Return on Net Worth (52.74)%
EPS (Rs.) (12.23), Book Value per equity share : Rs. 18.30
Net Worth Rs. 1393.05 million
Recommendation:
The new management of the bank has been actively addressing the financial, liquidity, risk management, personnel and operational issues facing the bank. Its strength is its high customer retail base in select geographical locations. Its promoter Aga Khan Fund for Economic Development has in the past consistently supported bank by infusing capital when required. Thus DCB is a Bank to watch out for in the Pivate Sector Banking space.
The bank has turned around in the June 06 Quarter reporting a net profit of Rs. 43.43 Million. Apply aggressively.
Issue Opens: 29 September, 2006
Issue Closes: 06 October, 2006
Issue Size : 71,500,000 (No. of Shares)
Lower Price Band : Rs.22
Upper Price Band : Rs.26
Application Multiple: 250 and in multiples there off starting with atleast 250 shares.
Maximum Shares: 3750 (for Retail)
Information URL : http://www.dcbl.com
Prospectus URL : http://www.sebi.gov.in/dp/dcbdraft1.pdf
ISSUE Description:
Company Background
DCB is a new private sector bank which has embarked on a revitalization plan. The Bank has a new management team and a Board of directors committed to improving the Banks financial performance. The key team is headed by Mr. Nasser Munjee, Chairman, who has over 28 years in the financial service industry and was previously CEO of IDFC. Mr. Gautam Vir, MD , has over 26 years of experience in the banking industry and was previously with Citibank. The bank has customer base of approximately 5,95,000 retail customers. It has 72 fully networked consumer branches, 101 ATMs and online Internet Banking. The Bank has a committed Promoter - Aga Khan Fund for Economic Development
The bank has 3 main business lines viz., :Consumer banking, Commercial banking and Treasury operations
Objects of the Issue:
The Bank believes that additional capital is required for future asset growth and in compliance with regulatory requirements. The objects of the issue are mainly to augment the Bank’s Tier I capital base to meet future capital adequacy requirements arising out of growth of business.
Key Financials for year ended March 31, 2006
The bank has incurred a net loss in each of the last three financial years.
Income : Rs. 802.90 Million
Profit after Tax / (Loss) brought forward : Rs.(1657.54) Million
Return on Net Worth (52.74)%
EPS (Rs.) (12.23), Book Value per equity share : Rs. 18.30
Net Worth Rs. 1393.05 million
Recommendation:
The new management of the bank has been actively addressing the financial, liquidity, risk management, personnel and operational issues facing the bank. Its strength is its high customer retail base in select geographical locations. Its promoter Aga Khan Fund for Economic Development has in the past consistently supported bank by infusing capital when required. Thus DCB is a Bank to watch out for in the Pivate Sector Banking space.
The bank has turned around in the June 06 Quarter reporting a net profit of Rs. 43.43 Million. Apply aggressively.
posted by Sensex.in Admin at 8:32 PM
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