MUMBAI: THE Bandhan Bank will launch its maiden initial public offering (IPO) on March 15 to raise Rs 4,473 crore for which shares are proposed to be listed on both NSE and BSE.For what is being billed as the biggest ever IPO by a local bank, the price band is set at Rs 370-375 with a face value of Rs 10 per equity share. At the upper end of the price band, the bank expects to rise up to Rs 4,473.75 crore from the IPO, while the selling shareholders IFC and IFC FIG are likely to mop up Rs 810 crore. The bank intends to use the funds raised from the sale to bolster its capital adequacy ratio.
The bank will sell 11.93 crore shares comprising fresh equity shares of 9.7 crore shares, plus offer for sale of 2.16 crore shares. By issuing 9.77 crore fresh equity shares, it will raise up to Rs 3,663.75 crore. In other words, the floor price will be 37 times and the cap price is 37.5 times the face value of the equity shares. The price/earnings ratio based on the basic earnings per share for the financial year 2017 at the upper end of the price band is 36.95 as against the industry average peer group P/E of 35.36.
Bandhan Financial Holdings Ltd, Bandhan Financial Services Ltd, Financial Inclusion Trust and North East Financial Inclusion Trust are the promoters of the Kolkata-based bank. As per the preliminary prospectus, the bank, led by CEO Shekhar Ghosh, had a net interest margin of 10 per cent for the six months on ending September 30, 2017.Bandhan and IDFC Bank got banking permits from the RBI in 2014. It then went on to start banking operations in August, 2015.
India’s biggest-ever bank IPO on March 15
The Kolkata-based bank and its shareholders will be selling up to 119.3 million shares
About 10 per cent of the post-issue share capital of the bank will be sold in a price range of H370-375 each
Bandhan Bank has 893 branches across India, with deposits of more than H27,230 crore and outstanding loans of H26,378 crore