Bandhan Bank's initial public offering (IPO) was subscribed by 0.42 times on the opening day with investors bidding for 3.50 crore shares against 8.34 crore shares on offer. Qualified institutional buyers bid for 1.26 times, High Net worth Individuals bid for 0.01 times, and Retail investors bid for 0.12 times of the shares reserved for them.
Bandhan Bank’s initial public offering (IPO) was subscribed by 0.42 times on the opening day with investors bidding for 3.50 crore shares against 8.34 crore shares on offer. Qualified institutional buyers bid for 1.26 times, High Net worth Individuals bid for 0.01 times, and Retail investors bid for 0.12 times of the shares reserved for them. On Wednesday, anchor investors were allotted 3.57 crore shares at Rs 375 per share. The investors who were allotted during the anchor allotment were Abu Dhabi Investment Authority, HSBC, UTI, ICICI Prudential Life, DSP Blackrock and Blackrock India Equities among others. Bandhan Bank had set a final price-band of Rs 370 to Rs 375 per share for its initial public offer (IPO). The Kolkata based lender plans to sell up to 11.9 crore shares, and when calculated at the upper price of the band, the offer could garner Rs 4,473 crore. Bandhan Bank’s is the biggest issue by a local bank. The IPO comprises of a fresh issue of 9.76 crores and an offer for sale of 2.16 crore shares.
The financial institution, IFC, is the existing investor tendering its shares through the offer for sale. The issue constitutes at least 10% of the post Issue paid up equity share capital of the bank. Bids can be made for a minimum lot of 40 equity shares and in multiples of 40 equity shares after that. The shares of the bank are required to get listed on the stock exchanges within three years from the date of commencement of business. For Bandhan Bank, the deadline is on or before August 22, 2018. Bandhan Bank said it would use the proceeds of the fresh issue to augment its Tier-I capital base and to meet the bank’s future capital requirements. The bank will not receive any proceeds of the offer for sale.
At present Bandhan Bank offers a variety of asset and liability products and services designed for micro banking and general banking. Bandhan Bank’s asset products consist of retail loans including a substantial portfolio of micro loans, as well as micro, small and medium enterprise loans and small enterprise loans. As of December 31, 2017, 96.49% of Bandhan Bank’s gross advances were in the priority sector lending category. Bandhan Bank’s liability products consist of savings accounts, current accounts and a variety of fixed deposit accounts.
Bandhan Bank’s current account and savings account deposits together stood at Rs 8,401 crore as on December 31, 2017. The bank has a CASA ratio of 33.22%. As on December 31, 2017, the bank’s total deposits and gross advances (including IBPC/Assignment) stood at Rs 25,293 crore and Rs 24,364 crores, respectively.