The price band of the IPO has been finalised at Rs 370 to Rs 375 per share. The equity shares of the bank will be listed on both BSE and NSE.
Kolkata-based Bandhan Bank is launching an initial public offer (IPO) of Rs 4,473 crore on March 15. The issue will be open for subscription until March 19.
The price band of the IPO has been finalised at Rs 370 to Rs 375 per share. The equity shares of the bank will be listed on both BSE and NSE.
Bandhan bagged the banking licence from Reserve Bank of India in 2014 along with IDFC and began operations as a universal bank from August 2015.
The last bank to come up with a maiden float was RBL Bank, which got listed on the bourses on August 2016, raising Rs 1,200 crore.
The bank will issue 11.93 crore shares of face value of Rs 10 each, which is 10% post issue share capital of the bank. Besides this, the bank will also issue fresh 9.77 crore equity shares and offer for sale of up to 2.16 crore shares.
About 35% of the issue is reserved for retail investors, 15% for high networth investors (HNIs) and 50% for qualified institutional investors.
Chandra Shekhar Ghosh, managing director and chief executive officer, Bandhan Bank, said, "The proceeds from the IPO will be used for the capital needs of the bank. About 98% of our portfolio is towards the priority sector and our NPAs (non-performing assets) are at 1.67% and our net interest margins are 9.9%. Our model is so cost-effective that we may be able to contain our expenditure, and at the same time, spread our selves to more areas."
The NPAs of the bank are gradually rising. From 0.15% in 2016, they went up to 1.67% in December 2017.
Bandhan Financial Holdings owns 89.76% stake in the bank and post the IPO, the stake will come down to 82%. International Finance Corporation (IFC), part of the World Bank Group, and IFC FIG (Financial Institutions Group) will hold 4.94 % stake in the bank.
Bandhan has a network of 893 branches with 27,300 employees. It has about 2,632 direct selling agents. It has a deposit base of Rs 27,233 crore and a loan book of Rs 26, 378 crore.
The low-cost deposits CASA (current account and savings account) ratio comprises 33% of the total deposit base, which has helped the bank bring down the lending cost from 22 % to 18%. It has a customer base of 12 million, of which only 2 million are the general bank customers and the remaining are micro-finance customers. Majority of its operations are concentrated in the East and North-East.
Bandhan Bank has appointed five merchant bankers for the IPO - Goldman Sachs (India) Securities, Kotak Mahindra Capital Company, Axis Capital, JM Financial and JP Morgan India.
Listing time
- The bank will issue 11.93 crore shares of face value of Rs 10 each, which is 10% post issue share capital of the bank
- It will issue fresh 9.77 crore equity shares and offer for sale of up to 2.16 crore shares
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Chandra Shekhar Ghosh")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}