Bandhan Bank Ltd, the newest among the private lenders said it will launch an IPO (initial public offering) of Rs 4,473 crore on March 15. The issue closes on March 19. The Kolkata-based bank, which transformed into a bank in 2015 from a micro-finance institution in 2001, will be selling up to 119.3 million shares in a price range of Rs 370-375 each in the IPO, according to a statement by the bank.
Kotak Mahindra Capital, Axis Capital, Goldman Sachs, JM Financial and J.P. Morgan are the banks managing the IPO. Bandhan will use the proceeds of the issue to expand its network to other parts of the country and also invest in technology, said Chandra Sekhar Ghosh, MD and CEO of Bandhan Bank. The bank will bring down the promoter holding to 82 per cent from 89 per cent post the IPO.
The Reserve Bank of India’s guidelines mandates banks to get listed within three years from the commencement of banking operations. Bandhan Bank started operations in August 2015. The bank is the first microfinance institution to receive universal banking licence.