Touted as India's biggest bank issue, Bandhan Bank\u2019s IPO to raise up to Rs 4,473 crore opens for subscription today. Formed in 2001, Kolkata-based Bandhan Financial Services had received RBI approval to set up a bank and it began its banking operations in August 2015 with the name Bandhan Bank. The bank has seen remarkable growth since its inception with in less than 3 years. Bandhan Bank primarily focuses on serving underbanked and underpenetrated markets in India (East and North East India). Even as investors maybe mulling whether to subscribe to the issue, we take a closer look at four key details and what brokerages have to say about India\u2019s biggest banking issue. IPO Details Bandhan Bank's initial public offer (IPO) consists of a sale of a total of 11.93 crore shares, which includes a fresh issue of 9.7 crore shares and an offer for sale of around 2.16 crore shares. Bandhan Bank has set a price band of Rs 370-375 for its issue. At the higher end of the price band, Bandhan Bank looks to raise up to Rs 4,473.75 crore, however, since the offer contains an offer for sale, Bandhan Bank will receive up to Rs 3,663.75 crore while the remaining Rs 810 crore will go to the selling shareholders International Finance Corp, part of the World Bank Group, and IFC FIG. The IPO will remain open from March 15 to March 19, 2018 and bids can be made in lots of 40 equity shares and in multiples of 40 shares thereafter. Objects of the issue According to the Bandhan Bank's IPO prospectus, the objects of the initial public offer include achieving benefits of listing equity shares on stock exchanges and to meet Reserve Bank of India\u2019s licensing guideline. Notably, as per RBI guidelines, Bandhan Bank\u2019s shares must get listed on the stock exchanges within three years from the date of commencement of business ie, on or before August 22, 2018. Further, Bandhan Bank seeks to augment the Bank\u2019s Tier-I capital base to meet the future capital requirements. Strengths Pointing out strengths of the Bandhan Bank public offer, Angel Broking notes that it is a leading lender in underbanked and underpenetrated markets, which is a a high yield business (NIM \u2013 10.7% for 9MFY2018) and also enjoys the priority sector lending (PSL) benefits. As on 3QFY18, advances of the bank stood at \u00a0Rs 22,931 crore, up 41.3% on year. Further, the brokerage firm notes that Bandhan Bank has healthy return ratios; strong asset quality, sufficient CAR to support growth and high valuations underpinned by high growth potential and profitability. Key Risks Noting key risks in Bandhan Bank\u2019s issue, Angel Broking says that the company has an unsecured portfolio, as Bandhan Bank focuses primarily in underbanked areas, the business involves lending to high risk borrowers. Hence, \u00a0any default from the customers could negatively impact its business. Further, as the bank commenced operations very recently, it has limited historical track record and relatively very less experience in banking business. Valuations Many brokerages point out that Bandhan Bank\u2019s IPO is richly priced, and chances of listing gains are low. However, it\u2019s a good long term bet. Angel Broking said that notes that at the upper end of the IPO price band, Bandhan Bank's IPO is valued at 8.3x 3QFY18 book value (pre-IPO) and on Post dilution basis at 5x of BV. According to the firm even though valuations are on the higher side, such premium valuations will persist given (a) healthy return ratio (25%+ RoE for FY2017 and 9MFY2018), (b) balance sheet strength (24.8% CAR ratio, CASA - 33.2%) and (c) experienced and focused management. \u201cConsidering the above positives, we recommend subscribe on the issue,\u201d the firm said.