Bandhan Bank is geared to raise up to Rs. 4,473 crore through the launch of initial public offering (IPO) of over 11.92 crore shares on March 15 (next Thursday). The bank fixed the upper band of price at Rs. 375 per equity share, according to a public notice released today. The lender has set a price band of Rs. 370 to Rs. 375 per equity share with face value of Rs. 10 each, the notice reads. The total issue size is of 11.92 crore shares.

Bandhan Bank IPO. Five Things To Know

1. Bandhan bank will issue fresh 9.76 crore equity shares and an offer for sale of up to 1.40 crore shares by the International Finance Corporation (IFC) and 75.65 lakh shares by IFC FIG Investment Company. The two entities are minor stakeholders of the Bandhan Bank.

2. The offer will open next Thursday (March 15) and close on March 19. The Kolkata-based lender had filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its proposed IPO in January and obtained “observations” from the regulator on February 28.

3. The book running lead managers to the issue are Kotak Mahindra Capital Company Ltd, Axis Capital Ltd, Goldman Sachs (India) Securities Private Ltd, JM Financial Institutional Securities Ltd and J.P. Morgan India Private Ltd.

4. The public issue of Bandhan Bank, which transformed from a micro-finance entity, is said to be the biggest banking IPO by a local bank. In April 2014, the Reserve Bank of India had granted a banking licence to Bandhan Financial Services as well as to IDFC.

5. Bandhan Financial Holdings has 89.76 per cent stake in the bank, Caladium Investment has 4.99 per cent, IFC is owner of 3.21 per cent and IFC FIG holds 0.32 per cent. Caladium Investment, GIC Singapore’s affiliate, will not dilute its stake in the IPO.