Shares of private sector lender Bandhan Bank made a strong debut with listing gains of 29% on bourses today. The stock listed at Rs 485 on the BSE compared with issue price of Rs 375 per share. At 10:32 am, the Bandhan Bank stock was trading 23.60% percent or 88 points higher at 463 level on BSE. On the NSE, the stock was trading at 462 level, up 23% from its issue price. The IPO was oversubscribed 14.6 times on the last day of issue on March 19.
The IPO was held from March 15 to March 19. The bank proposed to raise Rs 4,473-crore crore from the IPO.
The public offer aimed to comply with the RBI's new bank licensing norms that need the entity to get listed within three years of start of banking operations. Bandhan Bank was incorporated on December 23, 2014 as a wholly owned subsidiary of Bandhan Financial Holdings, the largest micro finance organisation in India.
On March 14, the lender raised Rs 1,342 crore from anchor investors, ahead of its initial share-sale. The anchor investor issue fetched Rs 1341 .91 crore after allotment of 3.57 crore shares to 65 anchor investors at a price of Rs 375 per share.
The price band for the initial public offer (IPO), which will close on March 19, has been fixed at Rs 370-375 per equity share.
Brokerages were largely positive on the issue with Geojit Financial Services, Way2Wealth, IIFL and Angel Broking giving a 'subscribe' rating to the issue. Choice Broking has assigned 'Subscribe with caution' rating to the offer.
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