The microfinance-focused bank IPO comprised of fresh fundraising worth Rs 37 billion and secondary share sale worth Rs 8 billion 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.
There has been a huge demand for the IPO despite the lender asking for steep valuations compared to other private sector peers. At the top-end of the price band, Bandhan Bank is valued at more than four times its price-to-book ratio.
Most analysts have given a thumb's up to the IPO given the lender's focus on underbanked and underpenetrated markets. Bandhan Bank's consistent track record, low-cost model and high margins warranted a premium, analysts said.