Bandhan Bank, the first micro-finance entity to have turned into a universal bank, on Monday filed draft papers with markets regulator Sebi for its initial public offer to raise an estimated amount of over Rs 2,500 crore, amid speculations that it is the biggest banking sector IPO till date.
The Kolkata-based private sector lender, in a statement, said that it will be offering 119.28 million shares in its proposed initial share sale, through a mix of primary and secondary share sale.
“Bandhan Bank Ltd has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for its proposed initial public offering of up to 11,92,80,494 equity shares of face value of Rs 10 each,” the lender said in a statement.
The IPO consists of a fresh issue of up to 9,76,63,910 equity shares and an offer for sale of up to 1,40,50,780 scrips by International Finance Corporation (IFC) and up to 75,65,804 shares by IFC FIG Investment Company, it said.
The equity shares are proposed to be listed on BSE and 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 when a micro-finance entity transformed into a universal bank. In April 2014, the Reserve Bank of India had granted banking license to Bandhan Financial Services as well as IDFC.
At present, the savings account at the Bank offers an interest rate of 6 per cent for balance above Rs. 1 lakh and 4 per cent for balance up to Rs. 1 lakh. For term deposits, the maximum interest rate offered is 7.15 per cent for one year with an additional 0.5 per cent for senior citizens.
Bandhan Bank’s public shareholders include International Finance Corporation (IFC), Small Industries Development Bank of India (SIDBI), Caladium Investment Pte. Ltd. (a company managed by GIC Special Investments Private Limited), Bandhan Employees Welfare Trust, and a few individuals.
Currently, Chandra Shekhar Ghosh is the bank’s MD and CEO.