Bandhan Bank Raises Rs 1,342 Crore From Anchor Investors
Bandhan Bank today raised Rs 1,342 crore by selling shares to 65 anchor investors ahead of its initial public offering that opens tomorrow.
The lender finalised allocating over 3.5 crore shares to anchor investors at Rs 375 apiece, according to an exchange filing. Its three-day IPO will open on March 15.
Amansa Holdings, ICICI Prudential, Neuberger Berman, Nomura Fund were the biggest anchor investors, each getting 3 percent of the anchor portion. Other marquee investors included HDFC Standard Life, Birla Sun Life, Citigroup, Aberdeen, SBI Life and Kotak Mahindra.
Backed by Singapore sovereign fund GIC Pte, Bandhan is eyeing a valuation of around Rs 44,700 crore at the top end of its price band. That makes it larger than not only non-banking finance company-turned banking entities such as AU Small Finance Bank, Ujjuvan Financial and Equitas Holdings, but also private banks such as RBL Bank, Federal Bank and IDFC Bank in terms of market capitalisation.
The IPO is a combination of fresh issue worth Rs 3,662 crore and an offer for sale of Rs 811 crore by existing investors – World Bank arms International Finance Corp (IFC) and IFC FIG Investment Company. Post the offer, the promoter holding in Bandhan Bank to come down to 82.3 percent from the current 89.6 percent.
An erstwhile microfinance company, Bandhan Financial Services Ltd., the country largest at the time, Bandhan Bank commenced banking operations in August 2015 after receiving a universal banking licence from the Reserve Bank of India.