Day 2: Bandhan Bank IPO subscribed 88%
MUMBAI: The ₹4,470 crore initial public offering (IPO) of Kolkatabased Bandhan Bank Ltd witnessed an overall subscription of 88% on Friday, the second day of the share sale, data from stock exchanges showed.
While the portion of shares reserved for institutional investors in the Bandhan Bank IPO received a firm response, those reserved for other categories of investors are still under-subscribed.
As of 5pm, on the institutional front, the IPO saw a subscription of 233%, while those kept aside for retail investors and HNIs were subscribed 33% and 24%, respectively. Bandhan Bank has set a price band of ₹370-375 per share for its IPO. At the upper end of the price band, the share sale values the lender at ₹44,730 crore. The issue closes on March 19.
The IPO comprises a fresh issue of 97.66 million shares, which at the upper end of the price band will fetch the company ₹3,660 crore. The proceeds from the fresh issue will be used to augment the bank’s tier-I capital base to meet future capital requirements.
International Finance Corp. (IFC) and IFC FIG Investment Co. are offering 14.05 million and 7.57 million shares, respectively.
IFC and its arm will collectively garner ₹810 crore from the initial share sale. IFC and IFC FIG collectively own 4.94% stake in the bank. Post-IPO, promoter Bandhan Financial Holding’s stake will reduce to 82.28% from 89.62% at present.
Bandhan started its banking operations in August 2015. As of December 31, Bandhan Bank had 887 bank branches and 430 ATMs. The lender’s current offerings include retail loans, micro loans, micro, small and medium enterprise (SME) loans and small enterprise loans.
On Tuesday, Mint reported that initial public offerings worth ₹15,000 crore have already been announced in March and a couple more such as Lemon Tree Hotels are in the pipeline.