See no arbitrage opportunity in IDFC; better wait for demerger: Daljeet Singh Kohli

In a chat with ET Now, Daljeet Singh Kohli, Head of Research, IndiaNivesh, shares his view on IDFC.

ET Now: Would you go out and recommend a buy or would you avoid IDFC?

Daljeet Singh Kohli: If somebody is looking to buy IDFC today, I would first ask why you would want to buy the stock. If you are buying it as a banking stock, then let NBFC first commence its banking because the remaining businesses — assets management and NBFC — do not appeal too much. What you want to buy is a banking stock, but that bank is a five-year story.

That said, there are a lot of positives. We also like IDFC and as soon as the bank gets listed, probably we will also be the buyers on the counter. But I do not think that there exists too much of an arbitrage opportunity. So one has to wait for the demerger to happen and let the bank get listed separately.