Bandhan Bank has set a final price band of Rs 370 to Rs 375 per share for its initial public offer (IPO). The Kolkata-based lender plans to sell up to 11.9 crore shares, and when calculated at the upper price of the band, the offer could garner Rs 4,473 crore. Bandhan Bank’s IPO will be the biggest issue by a local bank. The IPO comprises a fresh issue of 9.76 crore shares and an offer for sale of 2.16 crore shares. Financial institution IFC is the existing investor tendering its shares through the offer for sale.
The issue will constitute at least 10 per cent of the post-issue paid-up equity share capital of the bank. The issue will open on March 15 and close on March 19.
Bids can be made for a minimum lot of 40 shares and in multiples of 40 shares after that. The shares of the bank are required to get listed on the stock exchanges within three years from the date of commencement of business. For Bandhan Bank, the deadline is August 22, 2018.
Bandhan Bank said it will use the proceeds of the fresh issue to augment its tier-I capital base and to meet the bank’s future capital requirements. The bank will not receive any proceeds of the offer for sale. FE
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