Shares in private sector lender Bandhan Bank Ltd rose as much as 33 per cent in their trading debut on Tuesday after its $691 million initial public offering. At 10 am, the shares were trading at Rs 461.35, 23 percent higher than the IPO issue price of Rs 375. The IPO, which is the biggest for an Indian bank, had been subscribed nearly 15 times, driven by strong demand from institutional investors.
The stock listed at Rs 485, a sharp gain of 29.33 per cent from the issue price on BSE. On NSE, shares of the company opened the day at Rs 499, a premium of 33 per cent. The company has a market valuation of Rs 56,914.69 crore.
Bandhan Bank reported a net profit of Rs 1,111.9 crore in FY17 and a net profit of Rs 657.6 crore for the six months ended September 2017. As of September 30, 2017, Bandhan Bank’s deposits and gross advances (including IBPC/ Assignment) stood at Rs 25,442 crore and Rs 22,110 crore respectively, as per its DRHP.
Bandhan Bank was started as a microfinance company in 2001 and converted to a bank in 2015. The Kolkata-headquartered bank has two divisions — general banking and micro banking, offering a range of retail financial solutions, including a variety of savings and loan products.
“The shares will get listed on both the NSE and the BSE on March 27,” MD and CEO of Bandhan Bank C S Ghosh had said.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines