The private sector Bandhan Bank Limited 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 119,280,494 equity shares of face value of ₹10 each.
The price would be determined through the book-building process.
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 the BSE and the National Stock Exchange.
Of Bandhan’s present equity, about 5% is held by GIC Singapore, a sovereign wealth fund, 4.9 % by IFC and IFC FIG, 0.32 % by SIDBI, O.13 % by founder C.S. Ghosh and the balance is held by Bandhan Non-Operating Holding Company. In 2014, the bank was among the first two to get provisional universal banking licence from RBI in almost a decade.
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.
‘One-third for MFs’
At least one-third of the anchor investor portion shall be reserved for domestic mutual funds, subject to valid bids being received from this segment of investors at or above anchor investor allocation price.
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.
Currently, Bandhan Bank operates across 33 Indian States and Union Territories through a network of 864 branches, 2,485 Doorstep Service Centres and 386 ATMs, catering to more than 11 million customers.
2015 commencement
It has a workforce of about 25,200. Since its unveiling in August 2015, the bank has collected deposits exceeding ₹24,500 crore with an outstanding loan book of around ₹21,235 crore.
The Kolkata-headquartered bank has two divisions — general banking and micro banking — offering a suite of retail financial solutions, including a variety of savings and loan products.
As per the directives of the Reserve Bank of India, Bandhan had to make an initial public offer within three years of commencing banking operations.
