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Kolkata-based Bandhan Bank will offer about 11.92 crore shares of face value ₹10 each under its proposed IPO.
In its Draft Red Herring Prospectus (DRHP) filed with the Securities and Exchange Board of India on Monday, Bandhan said, the IPO will comprise a fresh issue of up to 9.8 crore equity shares and an offer-for-sale of up to 2.2 crore shares (1.4 crore shares by International Finance Corporation (IFC) and up to 75 lakh shares by IFC FIG Investment Company I).
Kotak Mahindra Capital, Axis Capital, Goldman Sachs (India) Securities, JM Financial Institutional Securities and JP Morgan India are the book-running lead managers for the IPO.
According to merchant banking sources, the issue, which is touted as the biggest banking sector IPO till date, is expected to raise over ₹4,000 crore. The shares are proposed to be listed on the BSE and the NSE.
RBI’s norm on listing The timing of the IPO would be decided on receipt of regulatory clearance and taking into consideration prevailing market conditions, CS Ghosh, MD & CEO, Bandhan Bank, said.
Bandhan is the first microfinance institution to receive universal banking licence in 2015. The Reserve Bank of India’s guidelines mandate the bank to get itself listed within a span of three years from the commencement of banking operations.
“While the bank is quite comfortable at a capital adequacy ratio of close to 26 per cent, it would go for listing as part of regulatory compliance,” he said.
Quota in anchors for MFs According to the DRHP filed by the bank, not more than 50 per cent of the issue, which is being made through book-building process, would be allocated on proportionate basis to qualified institutional buyers (QIB), provided that the bank, in consultation with the book-running lead managers and with intimation to the selling shareholders, may allocate up to 60 per cent of the QIB portion to anchor investors on discretionary basis.
At least one-third of the anchor investor portion would be reserved for domestic mutual funds, subject to valid bids being received from domestic mutual funds at or above the anchor investor allocation price. In the event of under-subscription, or non-allocation in the anchor investor portion, the balance equity shares shall be added to the QIB portion.
Of the QIB portion, 5 per cent would be available for allocation on proportionate basis to mutual funds only, and the remaining QIB portion would be available for allocation on proportionate basis to all QIB bidders (other than anchor investors).
Further, not less than 15 per cent of the issue would be available for allocation on proportionate basis to non-institutional bidders and not less than 35 per cent of the issue would be available for allocation to retail individual bidders.
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