Bandhan subscribed 14.62 times

Marco Green
March 20, 2018

Bandhan Bank's Rs 4,500 crore initial public offering (IPO) opened on Thursday (March 15) and closed on March 19.

The reserved portion of qualified institutional buyers (QIBs) has oversubscribed 38.67 times while the portion for non-institutional investors witnessed subscription of 13.89 times and retail 1.20 times.

As of 11.15am, the IPO received bids for 97,487,160 shares against the total issue size of 83,496,347, according to NSE data. The issue has been subscribed 1.25 times. The bank has deposits to the tune of Rs 23,230 crore, and they grew at the rate of 92.2 per cent. "Bandhan Bank provides attractive and profitable expansion opportunities".

Bandhan Bank has set a price band of Rs370-375 per share for its IPO. At the top end of the band, the lender could raise ₹4,400 crore.

Earlier, the Anchor Investors (AIs) portion in the IPO which consisted of 35,784,147 equity shares were subscribed by 65 AIs at Rs. 375 per share.

The company intends to utilize the proceeds from fresh issue towards part repayment of overdraft facilities, part repayment of term loans, general corporate objective and to meet issue related expenses. The merchant bankers managing the issue are Kotak Mahindra Capital, Axis Capital, Goldman Sachs (India) Securities, JM Financial, and J.P. Morgan India.

Other reports by Click Lancashire

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