Bandhan Bank IPO consists of fresh issue of up to 97,663,910 equity shares with sale of 14,050,780 shares by International Finance Corporation, BSE and NSE.will be the exchanges.
Bandhan Bank said it has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO). The private sector lender is looking to raise over Rs 2,500 crore via the share sale. The IPO consists of a fresh issue of up to 97,663,910 equity shares and an offer for sale of up to 14,050,780 equity shares by International Finance Corporation (IFC) and up to 7,565,804 equity shares by IFC FIG Investment Company. The equity shares are proposed to be listed on exchanges like the BSE and the NSE.
The book running lead managers to the issue are Kotak Mahindra Capital Company Limited, Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, JM Financial Institutional Securities Limited and J.P. Morgan India Private Limited. The public offering is expected to be one of the largest IPOs this year and is expected to hit the market around March or April.
“The Issue is being made through the book building process, in compliance with Regulation 26(1), the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended, wherein not more than 50 per cent of the issue shall be allocated on a proportionate basis to qualified institutional buyers (QIBs), provided that the bank, in consultation with the book running lead managers and with intimation to the selling shareholders, may allocate up to 60 per cent of the QIB portion to anchor investors on a discretionary basis,” the private lender said in a statement. At least one-third of the anchor investor portion shall be reserved for domestic mutual funds, subject to valid bids being received from domestic mutual funds at or above anchor investor allocation price, the lender said.
In the event of under-subscription, or non-allocation in the anchor investor portion, the balance equity shares shall be added to the QIB portion. Of the QIB portion, five per cent shall be available for allocation on a proportionate basis to mutual funds only, and the remaining QIB portion shall be available for allocation on a proportionate basis to all QIB bidders (other than anchor investors), including mutual funds, subject to valid bids being received at or above the issue price.
Further, not less than 15 per cent of the issue shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 35 per cent of the issue shall be available for allocation to retail individual bidders in accordance with the regulations, subject to valid bids being received at or higher than issue price, the lender said. As of 30 September, Bandhan Bank operated 864 bank branches and 386 ATMs, serving over 1.87 million customers. The bank’s current account and savings account deposits stood at Rs 7,170 crore as on that day, a CASA ratio of 28.18 per cent.