Bandhan Bank IPO

Private lender Bandhan Bank will gradually increase its exposure to secured loans by enhancing advances to the housing and MSME sectors, an official said. Presently, the bank's exposure to MFI loans, which are unsecured, is 47 per cent, and the share of its advances to the housing segment is at 24 per cent, retail at two per cent and the micro, small and medium enterprises sector at 27 per cent. Bandhan Bank MD and CEO Chandra Shekhar Ghosh told PTI that "the lender will increase its exposure to secured loans and has set a target to increase disbursements to housing and medium-size MSME loans. Advances to MFIs and small-ticket MSME loans are unsecured". He said that 25 per cent of its MFI loans will be converted to formal MSME advances as the interest rates in the segment are similar to micro-credit or the loans given to self-help groups (SHGs). There will be "no impact on the profitability" of the bank as there is no difference in the interest rates, he said. In the last quarter

It now holds 72 million shares in the lender

Bandhan Bank's initial public offering (IPO)-one of the biggest by a domestic bank, saw over 14 times demand the shares on offer. Despite weak secondary market conditions, the offering generated demand worth Rs 245 billion as against Rs 31 billion worth of shares on offer. The Kolkata-based lender had already raised Rs 13.4 billion for its Rs 45-billion IPO from anchor investors. Bulk of the demand in the IPO came from institutional investors. The so-called qualified institutional buyer (QIB) portion of the issue was subscribed 39 times. The non-institutional investor portion-commonly referred to as high-networth individual (HNI) quota, was subscribed 14 times, with most of the bids in the segment coming from 'corporates'. The retail portion, however, failed to garner much demand with the portion seeing just 1.2 times subscription. The microfinance-focused bank IPO comprised of fresh fund raising worth Rs 37 billion and secondary share sale worth Rs 8 billion by the International ...

Kolkata-based Bandhan Bank on Wednesday raised Rs 13.42 billion from anchor investors and is looking to raise a total amount of Rs 44.73 bn from the public issue of its shares

The qualified institutional investor (QIB) portion of the IPO has garnered 1.3 times subscription, while the retail quota has been subscribed 12 per cent

The private sector lender is expected to raise Rs 44.13 billion - Rs 44.73 billion at lower and upper end of price band, respectively

Although the bank's business outlook seems strong, expensive valuations are the key issue, say analysts

In its IPO filing, Bandhan Bank has valued itself at about Rs 450 billion-higher than any public sector bank, expect State Bank of India

Kolkata-based Bandhan Bank Rs 45-billion initial public offering (IPO) will remain open for subscription between March 15 and March 19. The microfinance-focused bank will issue fresh shares worth Rs 37 billion in the IPO. The offering also comprises of Rs 8 billion worth secondary share sale by the International Finance Corporation (IFC), an investment arm of the World Bank. The price band for the IPO has been fixed at Rs 370 to Rs 375 per share. At the top end of the price band, Bandhan Bank will be valued at nearly Rs 450 billion, making it the eight most valuable bank in the country.The bank's market value will be higher than all public sector banks (PSB), expect State Bank of India (SBI). After the recent correction, the market value of Bank of Baroda and Punjab National Bank (PNB) has dropped to Rs 310 billion and Rs 235 billion respectively. On the price-to-book value basis, Bandhan Bank is valued at nearly four times, more than most banks.The IPO will lead to 10 per cent ...

International Finance Corporation, a part of World Bank group, will offload about 1.8 per cent stake in the proposed initial public offering (IPO) of Bandhan Bank. The bank has filed a has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO) of up to 119,280,494 equity shares of face value of ?10 each. At present, IFC holds about 4.9 per cent stake in Bandhan Bank. Notably, other investors will hold on to their stakes in the bank, informed C S Ghosh, managing director, Bandhan Bank. Some of the other investors at Bandhan Bank include, Small Industries Development Bank of India (SIDBI), Caladium Investment Pte. Ltd. (a company managed by GIC Special Investments Private Limited) and Bandhan Employees Welfare Trust. "As of now, we are well capitalized, and our capital adequacy ratio is close to 26 per cent. The IPO is mainly for regulatory compliance," said Ghosh.Bandhan Bank will complete ...