Bandhan: Banking on lowest strata of credit market for its ambitious IPO

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

A strong connect with retail borrowers has often been seen as Bandhan's strategy as a microfinance institution and then as a bank. Its upcoming IPO is somewhat a manifestation of that ideology.

A financial institution with less than three years of operation is not allowed to have more than 25 per cent of retail and HNI participation in an IPO. Bandhan has got special permission from Sebi to have this limit up to 50 per cent, with 35 per cent of the net offer reserved for retail individual customers.

“We do see our retail subscribers are our future customers. This