Bandhan Bank’s Board has decided to appoint Goldman Sachs Group, JPMorgan Chase, Axis Bank, JM Financial and Kotak Mahindra Bank as lead managers to manage its proposed initial public offering (IPO).
Kotak Mahinda Bank will act as the left lead in the issue.
The size of the share sale, its timing and all other related aspects, have not been finalized as yet. The final decision on the proposed IPO will be subject to all regulatory approvals, the bank said in a statement.
According to Bloomberg report, Bandhan Bank could raise at least Rs 5000 crore (USD 780 million) and aims to sell shares in 2018. Investors will be offered about 10 percent stake in Bandhan Bank through the IPO.
The Kolkata-based new private sector bank had posted Rs 1,111.95 crore net profit for FY17 and its net profit for the quarter ended June 2017 increased by 35 percent.
Led by Chief Executive Officer Chandra Shekhar Ghosh, the microfinance-turned-universal bank operates across most Indian states and Union Territories through a robust network of 844 branches, 2,485 doorstep service centres (DSCs) and 384 ATMs, catering to more than 11 million customers. It has a workforce of about 25,200 employees.
Since its launch, the bank has collected deposits of over Rs 24,500 crore and the outstanding loan book is Rs 21,235 crore.
The bank’s investors include Singapore’s sovereign wealth fund GIC, world bank arm International Finance Corp and Small Industries Development Bank of India as its investors.
In the last few years, the banking sector has seen IPOs by RBL Bank and small finance banks—AU Small Finance Bank, Ujjivan Financial Services and Equitas Holdings, reaping heavy gains in the primary markets.
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