Book value per share of IDFC First Bank goes up by around 4.9%, from 39 to just under 41. In my opinion, bank shareholders are not losing anything, and in fact are gaining slightly. The quantum of benefit is definitely more for the holding company shareholders simply because it was trading at a huge discount. So valuation wise, trailing price to book at the current market price of 79 would be around 1.92 for bank shares. For the holding company shares, at the current market price of 111.5, it would be around 1.75.
Disclosure – holding bank shares from lower levels, added holding co shares recently
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