Bandhan Bank Limited IPO

Bandhan Bank Limited IPO (Bandhan Bank IPO Detail)

Company Promoters:

Bandhan Financial Holdings Limited

Bandhan Financial Services Limited

Financial Inclusion Trust 

North East Financial Inclusion Trust

Business Description: 

Bandhan Bank is a commercial bank focused on serving under banked and under penetrated markets in India. The company has a banking license that permits it to provide banking services pan-India across customer segments. The company currently offers a variety of asset and liability products and services designed for micro banking and general banking, as well as other banking products and services to generate non-interest income.

Bandhan Bank Products:
1. Retail loans including micro loans, SME loans and small enterprise loans
2. Savings accounts, current accounts and a variety of fixed deposit accounts
3. Other banking products and services including debit cards, internet banking, mobile banking, EDC-POS terminals, online bill payment services and the distribution of third-party general insurance products and mutual fund products.

Bandhan Bank Strengths:
1. Operating Model Focused on Serving Underbanked and Underpenetrated Markets (microfinance)
2. Consistent Track Record of Growing a Quality Asset and Liability Franchise
3. Extensive, Low Cost Distribution Network
4. Provide accessible, simple, cost-effective and innovative financial solutions
5. Robust Capital Base
6. Maintaining focus on micro lending while expanding further into other retail and SME lending

Bandhan Bank’s financial performance (in INR crore)

Objects of the Issue:

The Issue comprises of a Fresh Issue and an Offer for Sale.

Fresh Issue
The object of the fresh issue is to augment Bank’s Tier-I capital base to meet Bank’s future capital requirements.

Offer for Sale
The Selling Shareholders will be entitled to the respective portion of the proceeds of the Offer for Sale.

Issue Details:

Issue Type: Book Built Issue IPO 

Face Value: Rs 10 Per Equity Share 

Market Lot: 40 Shares

Minimum Order Quantity: 40 Shares

Retail Allocation: 35%

Tentative timetable in respect of the Offer :

  • Finalisation of Basis of Allotment : 27-3-2018.

Valuation of Bandhan Bank (Based on latest FY):

Earnings Per Share (EPS): INR10.15

Return on Net Worth (RONW): 25.01%

Net Asset Value (NAV): INR40.60 per share

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