Bandhan Bank share price jumps 33% on debut; lists at Rs 499 on NSE vs IPO price of Rs 375

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Updated: March 27, 2018 10:41:50 AM

Bandhan Bank share price: Kolkata-based private sector lender Bandhan Bank made a stellar debut on the exchanges n Tuesday, as the shares listed at at Rs 499 on NSE implying a premium of 33% as compared to the issue price of Rs 375.

Bandhan Bank shares listed at 33% premium to issue price.Bankdhan Bank shares had a blockbuster debut on the bourses, listing at Rs 499 on NSE implying a premium of 33% premium to issue price.

Bandhan Bank share price: Kolkata-based private sector lender Bandhan Bank made a stellar debut on the exchanges n Tuesday, as the shares listed at at Rs 499 on NSE implying a premium of 33% as compared to the issue price of Rs 375. On the BSE the shares listed at Rs 485, implying a 29% premium to issue price. Notably, the India’s biggest banking issue had been subscribed by 15 times backed by strong demand from institutions last week. According to data at the exchanges, investors from across the categories bid for a total of around 121 crore shares as against an issue size of 8.34 shares, implying a subscription of 14.58 times. Institutional investors registered the highest demand bidding for a total of 38 times their portion, while HNIs bid for for 6.07 times and retail investors subscribed 1.12 times the portion of shares reserved for them.

Bandhan Bank’s initial public offer consisted of a sale of a total of 11.93 crore shares, including a fresh issue of 9.7 crore shares and an offer for sale of around 2.16 crore shares. For its public offer, Bandhan Bank had set a price band of Rs 370-375 for its issue. raising up to Rs 4,473.75 crore at the higher end of the price band.

Bandhan Bank IPO came across as a much awaited IPO, being the single biggest public offer by a local bank. Interestingly, many brokerages pointed out that Bandhan Bank is a leading lender in underbanked and underpenetrated markets, which is a a high yield business (NIM – 10.7% for 9MFY2018) and also enjoys the priority sector lending (PSL) benefits.

Angel Broking had said that even though the 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. The firm had given a subscribe rating on the issue.

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