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Bandhan Bank a step closer to flotation

Calcutta: Private lender Bandhan Bank has moved closer to launching its public offer, which is estimated to raise over Rs 2,500 crore.

The city-based bank had filed draft papers with Sebi on January 1 and obtained "observations" from the regulator on February 28, according to the latest update with the market watchdog.

Sebi's "observations" are very important for any company to launch public issues such as an initial public offer (IPO) or a rights issue.

The bank hopes to finalise the issue date in a few days.

The proposed public offer is for 11.92 crore shares. It consists of a fresh issue of up to 9.76 crore shares and an offer for sale of up to 1.40 crore shares by the International Finance Corporation and 75.65 lakh shares by IFC FIG Investment Company.

With the IPO, the bank will also comply with the regulatory requirement of listing on the stock exchanges.

The equity shares are proposed to be listed on the BSE and the NSE.

Kotak Mahindra Capital Company Ltd, Axis Capital Ltd, Goldman Sachs (India) Securities Pvt Ltd, JM Financial Institutional Securities and J P Morgan India Private Ltd are the book-running lead managers to the issue.

Bandhan Bank is the first instance in India when a micro-finance entity has transformed into a universal bank. In April 2014, the Reserve Bank of India had granted a banking licence to Bandhan Financial Services as well as to IDFC.

While Bandhan Financial Holdings has a 89.76 per cent stake in the bank, Caladium Investment holds 4.99 per cent, IFC 3.21 per cent and IFC FIG 0.32 per cent. The rest is held by Chandra Sekhar Ghosh (0.13 per cent) and Sidbi (0.32 per cent). Caladium Investment is an affiliate of GIC Singapore and it will not be diluting its stake in the IPO.

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