Bandhan to raise Rs 4k crore via IPO

Bandhan Bank to launch Rs 4473-cr IPO on March 15

Bandhan Bank to launch Rs 4473-cr IPO on March 15

Kolkata-based Bandhan Bank today said it will launch an initial public offering (IPO) of up to Rs 4,473 crore on March 15. Bandhan Bank's IPO will close on March 19. The remaining 216 lakh shares are an offer for sale by International Finance Corp, which is part of the World Bank Group, and IFC FIG.

The private sector lender will sell over 119.28 million equity shares valued between Rs 4,430 crore and Rs 4,473 crore at a price band of Rs 370-375 per share.

For the nine months to end-December 2017, it reported a net profit of Rs 960 crore and about Rs 1,100 crore in the full year to March 2017, Bandhan, which also counts Singapore state investor GIC among its investors, said in the prospectus.

It may end up not complying with one of the two mandates of Reserve Bank of India: one, which mandates public listing within three years of starting operations and the other, which mandates reduction of promoter stake to 40%, again within three years of commencing operations. On the price-to-book value basis, Bandhan Bank is valued at almost four times, more than most banks.

According to the officials, the current offer of at least 10 per cent stake dilution is to meet the compliance requirements of listing on the bourses within three years under the regulator's guidelines.

Bandhan Financial Holdings Ltd, Bandhan Financial Services Ltd, Financial Inclusion Trust and North East Financial Inclusion Trust are the promoters of the Kolkata-based bank. So, promoters can not sell shares within the first year of listing. The bank has a network of 887 branches and 433 ATMs.

However, the Securities and Exchange Board of India (SEBI) mandates a one-year lock-in period for promoters after an IPO.

The IPO, however, comes at a time when Indian stock markets have corrected almost a tenth from record highs reached in late January. The bank's gross non-performing assets ratio increased to 1.26 per cent in the September quarter from 0.82 per cent in the preceding quarter as loan waiver schemes offered by several state government hampered credit discipline.

Recommended News

  • 'Iron Man' director Favreau to create 'Star Wars' TV series

    'Iron Man' director Favreau to create 'Star Wars' TV series

    Little is known about the series, though it will presumably take place a long time ago in a galaxy far, far away. Favreau's been involved with many Disney projects.
    Officers Shot In Missouri, 1 Fatally, Were Sent To The Wrong Address

    Officers Shot In Missouri, 1 Fatally, Were Sent To The Wrong Address

    For reasons that authorities still are trying to determine, the officers were sent to the address in Clinton where they were shot. She is assumed to have lived at the residence with the suspect, James Waters, who was found dead inside the home last night.
    Phillipines' President Should Visit Psychiatrist-UN Commissioner

    Phillipines' President Should Visit Psychiatrist-UN Commissioner

    High Commissioner for Human Rights Zeid Ra'ad al-Hussein told reporters in Geneva that Duterte needs to be checked by a doctor. But he abandoned the process in November, after what he called repeated attacks by the NPA during talks.
  • Republican Senator Jeff Flake vows bill to undo tariffs

    Some of them will be mildly helped by the president's tariffs. "We have a conducive tax and regulatory-the economy looks good". President Trump spoke at length about how the US industry had been taken advantage of over the years.
    Man City reach Champions League last eight

    Man City reach Champions League last eight

    It was siege mentality onwards with Tottenham the protagonist and Juve doing what they know how to do best, defend. City's 4-0 away win meant the second leg was a formality, with Pep Guardiola resting several first-team players.
    It's time to change batteries, check manufacture date on smoke alarms

    It's time to change batteries, check manufacture date on smoke alarms

    According to a news release, the most commonly cited cause of non-working smoke alarms are worn or missing batteries. If the alarm chirps, a warning that the battery is low, replace the entire smoke alarm right away.
  • Florida House sends Stoneman Douglas gun and school bill to Gov. Scott

    Florida House sends Stoneman Douglas gun and school bill to Gov. Scott

    James and Kimberly Snead, the couple who gave Cruz a home after his mother died late past year , testified before the grand jury. He was indicted on Wednesday on 17 counts of murder and 17 counts of attempted murder for the 17 students who were injured.
    Lisa Bonet Used To Feel Sinister Vibes From Bill Cosby

    Lisa Bonet Used To Feel Sinister Vibes From Bill Cosby

    She also clarified that she did not know of any specific nefarious actions made by Cosby during her time on the show. Bonet continues to take the high road when it comes to speaking about Cosby today.
    Babies who look like their dads are more healthy

    Babies who look like their dads are more healthy

    More frequent time with a dad allows a bond to be created between the baby and father, including caregiving and supervision. The result has implications regarding the role of a father's time especially in fragile families.
  • The Teaser For 'The Handmaid's Tale' Season 2 Has Us Freaking

    The Teaser For 'The Handmaid's Tale' Season 2 Has Us Freaking

    Throughout the teaser , she repeats with disgust the rules that women in Gilead have been forced to obey: " Wear the red dress ". If Handmaid's Tale is about to get more thrilling and action-y , we're all for it.
    Rick Ross' manager died at his home 2 months before hospitalization

    Rick Ross' manager died at his home 2 months before hospitalization

    The medical examiner determined he died from atherosclerotic cardiovascular disease, which is a clogging of the arteries. The post comes nearly one week after the rapper was rushed to Miami medical care after being found unresponsive.
    NYPD is close to arresting Harvey Weinstein, according to reports

    NYPD is close to arresting Harvey Weinstein, according to reports

    Weinstein has been accused of varying degrees of sexual harassment, sexual assault and rape by more than 50 women. On top of that, the New York State Attorney General's office has a civil suit against him.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.