The bank is aimed to raise Rs 4,413.4 crore - Rs 4,473 crore at a price of Rs 370-375 per share, respectively.
One can look at HAL for listing gains, said G Chokkalingam, Founder & MD, Equinomics Research & Advisory.
Bandhan Bank's Rs 4,473 crore initial public offer was subscribed 42 percent on the first day of bidding today. The portion reserved for qualified institutional buyers (QIBs) was oversubscribed 1.26 times, non institutional investors 1 per cent and retail investors 12 percent.
Since the issue is priced to perfection it leaves little on the table for retail investors but it good for long-term investors, said Sanjiv Bhasin, Executive VP-Markets & Corporate Affairs, IIFL.
The capital raised via IPO will give bank strength to grow its business, said Chandrashekhar Ghosh, MD and CEO, Bandhan Bank.
The price band of the issue is Rs 370-375 per equity share with face value of Rs 10 each
The issue is primarily to comply with the RBI’s new bank licensing norms that require the entity to get listed within three years of start of banking operations.
The bank raised the amount by issuing 3,57,84,147 equity shares to 65 anchor investors at higher end of price band.
Out of total fund raising, the bank already raised Rs 1,342 crore by issuing 3,57,84,147 equity shares to 65 anchor investors at Rs 375 per share.
Even as the banking sector is reeling from the Rs 12,700 cr-PNB scam, there is some good news as the newly formed Bandhan Bank is set to come up with one of the biggest IPOs among banks in a long time.
IFC and IFC FIG would offer 1.4 crore and 75.65 lakh shares for sale, respectively.
Kolkata-based lender Bandhan Bank will be raising up to about Rs 4,473.75 crore from the public through sale of 11.93 crore equity shares
The price band of the much-awaited IPO has been finalised at Rs 370-375 per share and the bid would remain open from March 15 to 19.
The bank which mainly lends to the micro finance institutions (MFIs) also sees MSME and affordable housing segments as a huge lending opportunity, said Chandra Shekhar Ghosh, CEO, Bandhan Bank.
The Kolkata-based bank had filed draft papers with Sebi on January 1 and obtained "observations" from the regulator on February 28, as per the latest update with the markets watchdog.
"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.
In a statement, the bank said it proposes to offer up to 119,280,494 equity shares of face value of Rs 10 each at a price to be determined through a book building process including premium.
The current account and savings account (CASA) of the bank was 28.18 percent of total deposits in the September-ended quarter.
The present shareholders of Bandhan Bank, SIDBI, IFC and GIC of the Singaporean government were likely to take part in the maiden offering. Bandhan Bank, which started full-fledged banking operations in August 2016, were asked by RBI to come out with the IPO in three years from then, he told PTI.
Demonetisation has also improved transmission in the banking system and led to the greater financialization of savings
The Reserve Bank of India's guidelines mandated the bank to get itself listed within three years from the commencement of banking operations. The bank started its operation in August 2015.
A look at top cues from the domestic and international markets that could have a bearing on D-Street today.
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).
"When we got the in-principle license from RBI, we were asked to come out with IPO by 2018", founder and CEO of Bandhan Bank Chandra Sekhar Ghosh said at the second foundation anniversary here last evening.