RBL BANK - Is it a Good Long Term Story?

IPO valuations are critical for investor interest. Comparing a new listing to established players helps gauge its attractiveness and potential for post-listing gains.

Neutral to slightly cautious on RBL Bank's IPO; look for post-listing price discovery before making significant commitments.

For Indian markets, this story mainly matters for RBLBANK, YESBANK and the banking pocket. The current signal is mixed, so traders should look for follow-through in price, volume, and sector breadth instead of reacting to the headline alone.

Watch whether the next market session confirms the setup described here: Discussion around IPO valuation and comparison to peers, suggesting it might not be cheap at the offer price. Used as a comparative benchmark for PE ratio in the banking sector. Also track volume confirmation, sector participation, and whether the move holds beyond the first reaction.

• •Unofficial report that RBL had sold some shares before the IPO at Rs 195/-.
• •IPO offer price is Rs 225/, which works out to around 23 PE.
• •YES BANK has a PE of 19, suggesting RBL Bank is not available cheap.
• •IPO is seen as a way for existing investors to sell out at a premium rate.
• •Risk flag: Overvaluation concerns