Kolkata: The initial public offer (IPO) of Bandhan Bank was oversubscribed 14.56 times, eliciting good response from qualified institutional placement (QIP) and high net worth individual (HNI) investors, a top official of the bank said. Monday was the last date of the offer.
Bandhan Bank’s managing director and chief executive officer Chandra Shekhar Ghosh told PTI that oversubscription on account of QIP was 38.67 times and that of HNI investors was 13.89 times. The price band had been fixed between Rs370 and Rs375 per share, with a face value of Rs10 each to raise Rs4,500 crore.
The entire proceeds of the offer would be utilised for capital requirements. Retail oversubscription was 1.05 times which is going to rise further and applications received on this count was approximately 10 lakh, Ghosh said.
“This was excellent response from the investing public. The success of the issue showed the people has accepted the Bandhan Bank model,” Ghosh said. Kotak Mahindra Capital, JM Financial, Goldman Sachs and JP Morgan were the book running lead managers of the issue.
Among the anchor investors were Abu Dhabi Investment Authority - Behave, Blackrock India Equities (Mauritius), HSBC Indian Equity Mother Fund, UTI - Mastershare Unit Scheme, BNP Paribas Arbitrage, Amansa Holdings and Tata Balanced Fund.
The Kolkata-based private sector lender was mandated by the Reserve Bank of India (RBI) to come out with an IPO after three years of completion of banking operations after migrating from microfinancing activity only.