Bandhan Bank IPO subscribed 42% on day one

Receives bids for 3.50 crore shares

The initial public offer (IPO) of Bandhan Bank received bids for 3.50 crore shares on the first day of bidding today, 15 March 2018, as against 8.34 crore shares on offer, as per the data on the National Stock Exchange of India (NSE) website at 17:15 IST. The issue has been subscribed 0.42 times.

The issue comprises of a fresh issue of 9.77 crore equity shares and offer for sale (OFS) of 2.16 crore shares. The OFS includes sale of equity share of up to 1.40 crore by IFC and up to 75.65 lakh equity shares by IFC FIG. The issue closes on Monday, 19 March 2018. The price band for the issue has been fixed at Rs 370 to Rs 375 per share.

The objective of the fresh issue is also to augment bank's Tier-I capital base to meet the bank's future capital requirements. The bank also believes that the listing of equity shares will enhance the bank's visibility and brand name among existing and potential customers.

Ahead of the opening of the issue, the bank's board in a meeting held on Wednesday, 14 March 2018, finalized allocation of 3.57 crore equity shares in aggregate to a slew of anchor investors, including many domestic and foreign funds, at Rs 375 per share.

The bank reported a net profit of Rs 957.70 crore on net total income of Rs 2671.64 crore in the nine months ended December 2017.

Bandhan Bank is a commercial bank focused on serving underbanked and underpenetrated markets in India. The bank currently offers a variety of asset and liability products and services designed for micro banking and general banking, as well as other banking products and services to generate non-interest income.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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