Bandhan Bank, which has set the ball rolling for the initial public offer (IPO) of shares, today filed draft papers with markets regulator SEBI for its initial public offer (IPO) to raise an estimated amount of over Rs 2,500 crore. “Bandhan Bank Ltd has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for its proposed initial public offering of up to 11,92,80,494 equity shares of face value of Rs 10 each,” the lender said in a statement. Earlier, the management had indicated that the bank will come out with the offer within three years of operation, to comply with RBI guidelines.
“We will have to do it within three years of starting the banking operations to comply with the RBI guidelines. I will not defer the launch of IPO, but the timing of its launch will depend on the market conditions,” Chandra Shekhar Ghosh, managing director and chief executive officer, Bandhan Bank, told reporters in September last year.
We take a look at four key details regarding the offer.
The IPO consists of a fresh issue of up to 9,76,63,910 equity shares and an offer for sale of up to 1,40,50,780
scrips by International Finance Corporation (IFC) and up to 75,65,804 shares by IFC FIG Investment Company.
The issue, which is the touted as the biggest banking sector IPO till date, is expected to raise over Rs 2,500
crore, merchant banking sources told PTI. The equity shares are proposed to be listed on BSE and NSE.
About the Bank
Bandhan Bank, which was the first instance in the country of a microfinance entity transforming into a universal bank, commenced its operations on August 23, 2015 with 501 branches across 24 states. Both GIC, Singapore’s sovereign wealth fund, and International Finance Corporation (IFC), a member of the World Bank Group, hold nearly 5% stake in the bank. Representatives from IFC and GIC have joined the bank’s board. Currently, the bank has 840 branches and 383 ATMs, with 11 million customers. Around 70% of its branches are in rural areas.
Book running managers
Kotak Mahindra Capital Company Ltd, Axis Capital Ltd, Goldman Sachs (India) Securities Pvt Ltd, JM Financial
Institutional Securities and J P Morgan India Private Ltd are the book running lead managers to the issue.