Bandhan Bank's IPO, one of the biggest Indian domestic Bank, saw over than 14 times demands the shares on offer. In spite of weak secondary market situations, the offering created demand worth Rs 245 billion as against Rs 31 billion worth of shares on offer.
The Kolkata-based bank had effectively raised Rs 13.4 billion for its Rs 45-billion IPO from anchor investors. Greater part of the request in the IPO originated from institutional speculators. The alleged qualified institutional buyer (QIB) segment of the issue was bought in 39 times. The non-institutional financial specialist divide, normally alluded to as high-networth individual (HNI) quantity, was bought in 14 times, with the vast majority of the offers in the section originating from 'corporates'. The retail portion, be that as it may, neglected to accumulate much request with the part observing only 1.2 times subscription.
The microfinance-focused bank IPO comprised of fresh fundraising worth Rs 37 billion and secondary share sales worth Rs 8 billion by the International Finance Corporation (IFC), a investment arm of the World Bank.
The price band for the IPO has been settled at Rs 370 to Rs 375 for each share. At the top end of the price band, Bandhan Bank will be esteemed at almost Rs 450 billion, making it the eight most valuable bank in the nation.
There has been a gigantic demand for the IPO despite the lenders requesting steep valuations contrasted with other private division peers. At the best end of the price band, Bandhan Bank is esteemed at in excess of four times its cost to-book ratio.
Most analysts have given a thumb's up to the IPO given the moneylender's focus on underbanked and underpenetrated markets. Bandhan Bank's reliable reputation, minimal cost model and high margins warranted a premium, analysts said.
