Bandhan Bank IPO opens on March 15

One of India's newest bank Bandhan Bank is entering the equity market through Rs. 4,500 crore Initial public offering (IPO). 

Bandhan Bank and its shareholders International Finance Corporation (IFC) and IFC FIG Investment Company will sell 119.3 million shares or around 10 per cent of the post-issue share capital of the bank. The price band of the IPO is Rs. 370 to 375 per equity share. The issue opens on March 15 and closes on March 19.

The micro-finance company which started in 2001 turned to a full-fledged bank in 2015, after the RBI gave it a banking licence in 2014. As per RBI's licensing norms, the equity shares of the Bandhan Bank are to be listed on or before August 22, 2018. Also, the objective of the fresh issue of equity shares includes augmenting the bank’s Tier-I capital base to meet future capital requirements and regulatory compliance for the enhanced capital base.

The bank's public shareholders include IFC, Small Industries Development Bank of India (SIDBI), Caladium Investment and Bandhan Employees Welfare Trust.

The Kolkata-based bank has 864 branches and caters through two main segments micro banking and general banking. Bandhan Bank’s total deposits were Rs. 25,200 crore and advances Rs. 22,250 crore and with a capital adequacy ratio stood at 26.25 per cent, as on September 30, 2017.