Although, the size of IPO is yet to be crystallized before its initial release, stated Bandhan Bank.
Since many months, IPO is giving huge gain to investors without much risk as Indian Economy is getting steady and stable gradually. Bandhan Bank is following the same path where investors gain good returns once the IPO is listed.
When we focus on this financial company, Bandhan Bank was started with micro-finance services and has recently acquired banking license in 2015, has been setting its strategies to offer IPO.
In two decades, RBI has given only 2 licenses in private sector i.e. infrastructure financier IDFC Ltd and Bandhan Bank Ltd. to start a new bank. Earlier in 2004, Yes Bank and Kotak Mahindra Bank was the top private lender to get banking license from RBI.
In addition, according to Bandhan Bank officials, it has already started to hire investment banks for its proposed IPO and has planned all the formal communication which is scheduled in coming weeks.
Bandhan Bank IPO will be a mixture of primary and secondary share sale. It will follow all the RBI norms to help listings strengthen its capital in very early stage. IPO prices still remain unknown.
In last quarter, its deposits were raised 51% to Rs 22,439 crore at the end of June. Cost of deposits has over the past year come down from 8.22% to 7.04%. The bank’s total outstanding loans stood at Rs21,389 crore as of the end of June.
When we focus on IPO gains history for banks category, RBL Bank Ltd and the share sales of small finance banks—AU Small Finance Bank, Ujjivan Financial Services Ltd and Equitas Holdings Ltd. have already shared good returns as soon as it listed.
Earlier last month, Cochin Shipyard shared huge gains in its listings to its IPO investors.
Bandhan Bank consists of 840 branches and 2,444 doorstep service centres in 33 states and union territories.