Mumbai: Kolkata-based Bandhan Bank Ltd on Thursday said it will launch its Rs4,470 crore initial public offering (IPO) on 15 March. The bank will sell up to 977 lakh new shares in the IPO, which will close for subscription on March 19.
Bandhan Bank, which started operations in August 2015, now has 893 branches across India, with deposits of more than Rs 27,230 crore ($4.2 billion) and outstanding loans of Rs 26,378 crore, according to its website. 375 for the IPO opening on March 15. The bank will bring down the promoter holding to 82 per cent from 89 per cent post the IPO. (IFC) and up to 7,565,804 shares by IFC FIG Investment Co. The benchmark Nifty is down nine per cent from its peak in January, while the Bank Nifty index has come off around 12 per cent from its peak. The shares of the bank are required to get listed on the stock exchanges within three years from the date of commencement of business. Their capital adequacy is now around 17 per cent so capital is not needed. Bandhan, formerly a microfinance company specialising in small-value loans, and IDFC Bank were the only two companies to win bank permits from the Reserve Bank of India in 2014, the first bank licensing process in a decade.
Bandhan Bank officials told The Telegraph that the bank would have to present its case to the regulator and seek its directive on the matter. As of September 2017 it had 864 branches in 33 states across the country.
The net interest margins of the bank stands at 9.9 per cent, current account savings account (Casa) at 3.32 per cent and cost to income at 35.4 per cent. The bank intends to use the funds raised from the sale to bolster its capital adequacy ratio. Yes Bank Ltd with a Rs70,874.8 crore market capitalization is placed one rank ahead of Bandhan.
The Book Running Lead Managers to the Bandhan Bank offer are Kotak Mahindra Capital Company Limited, Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, JM Financial Limited and J.P. Morgan India Private Limited.