BANDHAN BANK TO LAUNCH ₹4,470 CR IPO ON MARCH 15

MUMBAI: Kolkata-based Bandhan Bank Ltd on Thursday said it will launch its ₹4,470 crore initial public offering (IPO) on March 15.

Bandhan 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. Bandhan Bank’s valuation will surpass that of Federal Bank Ltd, which was valued at ₹18,345.7 crore as of closing on March 8, making it the seventh most valuable private sector lender on the Indian bourses.

Bandhan’s IPO valuation puts it ahead of IDFC Bank Ltd, which was the other entity to receive a universal banking licence from the Reserve Bank of India (RBI) in 2015.

On March 8, IDFC Bank’s market capitalisation stood at ₹16,831.37 crore. Yes Bank Ltd with a ₹70,874.8 crore market capitalization is placed one rank ahead of Bandhan.

The share sale will see a dilution of around 10% stake.

The IPO also 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 of the bank.

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.