The initial public offering (IPO) opens on 15 March and closes on 19 March. The company will be offering shares in the price band of Rs 370 - 375. At the upper end of the price band the lender will be valued at Rs 44,730 cr. The IPO will see a stake dilution of 10%. The listing is necessitated due to the RBI guidelines which stated that it was to list with 3 years of commencement of its universal banking operations.
About Bandhan Bank.
Bandhan began it journey as a micro finance company and obtained the universal banking license in 2014. Currently the bank has 3799 touch points, 893 bank branches, 2696 doorstep service centers and 433 ATMs. The bank offers both micro banking and general banking solutions. The bank had deposits worth 27233 crores and a loan book of 26378 crores.
The net interest margins (NIM) of the Bank stood at 9.9% while the current account savings account (Casa) stood at 3.32% and the cost to income at 35.4%. Micro lending constituted 90% of the loan book. Chandra Shekhar Ghosh, CEO has said that
We expect in the next 3-5 years non-micro loans will be around 25% of our total loan book.
The bank is backed by couple of marquee names such as GIC Pte (Singapore’s sovereign wealth fund) and International Finance Corporation (IFC -World Bank Group).
Purpose of the issue
To augment Tier-1 capital base and to meet capital requirements which includes organic and inorganic expansion.
The issue comprises of a fresh issue of 9.76 crore shares and an offer for sales (OFS) of 2.21 crore shares. DRHP
Issue opens - March 15th
Issue close - March 19th
Issue size - ₹ 4473 crores at the upper end of the price band.
Listing on both NSE and BSE
Retail portion - 35%
Bid lot - 40 shares
Basis of allotment - 22 March
Refunds - 23 March
Credit of shares - 26 March
Listing 27 March
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