Bandhan Bank has filed a draft red herring prospectus with Sebi for an IPO of up to 119 million equity shares, with face value of Rs 10 each.
Bandhan Bank, which will complete three years of operations in August 2018, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) of up to 119 million equity shares, with face value of Rs 10 each.
The IPO is mainly for regulatory compliance. According to the Reserve Bank of India mandate, it needs to file an IPO within three years of operation.
Except for International Finance Corporation (IFC), a member of the World Bank Group, all other shareholders will retain their stakes, said C S Ghosh, managing director.
IFC will offload about 1.8 per cent stake in the IPO. At present, it holds about 4.9 per cent stake in the bank.
Some of the other investors include Small Industries Development Bank of India (SIDBI), Caladium Investment (a company managed by GIC Special Investments) and Bandhan Employees Welfare Trust.
“As of now, we are well capitalised, and our capital adequacy ratio is close to 26 per cent. The IPO is mainly for regulatory compliance,” said Ghosh.
The IPO consists of a fresh issue of up to 97 million equity shares and an offer for sale of up to 14 million equity shares by IFC and up to 7.5 million equity shares by IFC FIG.
Lead managers of the issue are Kotak Mahindra Capital Company, Axis Capital, Goldman Sachs (India) Securities, JM Financial Institutional Securities and JP Morgan India.
Bandhan Bank had reported an 18 per cent rise in net profit (Rs 3.31 billion) for the second quarter of this financial year.
The lender’s net profit was Rs 2.80 billion in the same period in the last financial year.
Photograph: Reuters
