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GIC-Backed Bandhan Bank’s IPO Fully Subscribed On The Final Day

Bandhan Bank’s Rs 4,473-crore IPO was subscribed 14.5 times on the final day of bidding so far.

The Prabhadevi Branch of Bandhan Bank. (Photographer: Anirudh Saligrama/BloombergQuint)
The Prabhadevi Branch of Bandhan Bank. (Photographer: Anirudh Saligrama/BloombergQuint)

Final Day Subscription

  • Qualified institutional buyers: 38.6 times
  • High net-worth investors: 13.8 times
  • Retail investors: 1 time
  • Overall: 14.6 times

Bandhan Bank’s Rs 4,473-crore initial public offering was subscribed 14.6 times on the final day of bidding so far.

The portion set aside for qualified institutional buyers received bids for nearly 38.6 times the number of shares on offer. The retail segment was fully subscribed, according to data shared by Axis Capital as of 5 pm, while shares reserved for high network investors was subscribed 13.8 times.

The offer received bids worth Rs 46,000 crore, data available on stock exchanges showed.

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 will come down to 82.3 percent from the current 89.6 percent.

The price band for the three-day IPO was fixed at Rs 370-375 apiece.

Ahead of the IPO, the lender raised Rs 1,342 crore by selling shares to 65 anchor investors. Amansa Holdings, ICICI Prudential, Neuberger Berman, Nomura Fund were the biggest anchor investors.

An erstwhile microfinance company, Bandhan Financial Services Ltd., the country’s largest at the time, Bandhan Bank commenced banking operations in August 2015 after receiving a universal banking licence from the Reserve Bank of India.