Private sector lender Bandhan Bank has received markets regulator SEBI’s go ahead to raise an estimated Rs 2,500 crore through an initial share sale. The Kolkata-based bank had filed draft papers with SEBI on January 1 and obtained “observations” from the regulator on February 28, as per the latest update with the markets watchdog.
SEBI’s “observations” are very important for any company to launch public issues such as initial public offer and rights issue. According to the draft papers, Bandhan Bank’s IPO comprises fresh issue of up to 9,76,63,910 equity shares and an offer for sale of up to 1,40,50,780 shares by International Finance Corporation (IFC) and up to 75,65,804 shares by IFC FIG Investment Company.
The issue, which is touted as the biggest banking sector IPO till date, is expected to raise over Rs 2,500 crore, merchant banking sources said. 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 of a microfinance entity transforming into a universal bank. In April 2014, the Reserve Bank of India had granted banking licence to Bandhan Financial Services as well as IDFC.