Bandhan Bank's initial public offer (IPO) received a decent response on the first day of the three-day bidding on Thursday. The Rs 4,473-crore IPO was subscribed 42 per cent yesterday.While qualified institutional buyers (QIBs) put in bids for the IPO 1.26 times their portion size, the portion for non-institutional investors received 1 per cent subscription.
Retail investors placed bids for 12 per cent of their portion size of the IPO.
The IPO received bids for 3,50,05,200 shares against the total issue size of 8,34,96,347 shares, data available with the NSE till 1730 hrs showed.
This is the first public offer for a private sector lender this year.
Over 11.9 crore equity shares valued between Rs 4,430 crore and Rs 4,473 crore at a price band of Rs 370-375 per share are on offer. The IPO comprises a fresh issue of 97,663,910 shares, an offer for sale for up to 14,050,780 shares by World Bank-controlled International Finance Corp (IFC) and up to 7,565,804 shares by the IFC FIG Investment Co.
Post the IPO, the bank's holding will be diluted to around 82 per cent, from around 89 per cent at present.
The bank, which had transferred its entire microfinance business to Bandhan Financial Services in 2009, received RBI approval to start banking operations in April 2014 and started its operations in August 2015.
The book running lead managers to the IPO are Kotak Mahindra Capital Company, Axis Capital, Goldman Sachs (India) Securities, J M Financial Institutional Securities and J P Morgan India.
Bandhan Bank began operations on August 23, 2015 when Bandhan Financial Services Limited (BFSL), its parent company, transferred entire microfinance business to the bank. Since then, the bank has expanded to 864 branches servicing approximately 11 million customers located in 33 states as of September 30, 2017.