Bandhan Bank lists at a 33% premium of Rs499 on NSE
27 March 2018
Bandhan Bank has made a strong debut on the bourses with the stock listing at Rs499, a 33 per cent premium to its issue price of Rs375 per share, on the National Stock Exchange (NSE) today.
On the BSE, the new generation bank’s stock listed at Rs485, at a 29 per cent premium to its issue price.
At 10:04 am the Bandhan Bank stock was trading Rs472 on the BSE and NSE. A combined 35.11 million shares changed hands on the two exchanges.
Bandhan Bank, with a current market valuation of Rs57,159 crore stands at 53rd position in overall market capitalisation ranking, as per BSE data.
The private sector lender raised Rs4,500 crore through an initial public offer (IPO), which was oversubscribed by 14.6 times. The qualified institutional buyers (QIBs) portion was subscribed 38.67 times, while the non-institutional investors category was subscribed 13.89 times and the retail individual investors (RIIs) category received subscription of 1.20 times.
Bandhan Bank plans to utilise the funds raised through the fresh issue to augment bank's Tier-I capital base to meet future capital requirements. Besides, the listing is expected to improve the bank's visibility and brand value.
Bandhan Bank intends to use issue proceeds for raising capital base and part exit of one of its existing shareholders IFC.
After getting in-principle licence from the RBI it migrated from micro-financing activity and adopted a unique model for normal banking services after.
This retail banking network has grown to 864 bank branches and 386 ATMs as of 30 September 2017.
The bank's network is particularly strong in east and northeast India, with West Bengal, Assam and Bihar together accounting for 57.75 per cent and 58.13 per cent of branches and doorstep services (DSC) respectively.
On the asset side, the bank has a very healthy business mix with 96.5 per cent of total advances qualifying as priority sector lending (PSL) while on the liability side 33.2 per cent of its total deposits are in the low-cost current account and savings account (CASA).
Bandhan Bank reported net interest margin of 9.9 per cent while its gross and net NPAs stood at 1.67 per cent and 0.8 per cent, respectively and high return ratios of 25.6 per cent RoE and 4.1 per cent RoA.