Bandhan Bank Limited IPO
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Objects of the Bandhan Bank Limited IPO:
Objectives of
Bandhan Bank Limited IPO
are: (i)Offer for Sale (ii)Fresh Issue (iii)The objects of the Fresh Issue are to augment our Bank’s Tier-I capital base to meet our Bank’s future capital requirements.Bandhan Bank Limited IPO Details:
| Open Date: | Mar 15 2018 |
| Close Date: | Mar 19 2018 |
| Total Shares: | 119,280,494 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Book Built Issue IPO |
| Issue Size: | 4473 Cr. |
| Lot Size: | 40 Shares |
| Issue Price: | ₹ 370-375 Per Equity Share |
| Listing At: | NSE,BSE |
| Listing Date: | Mar 27 2018 |
Promoters And Management:
Dr. Ashok Kumar Lahiris, Independent Director (part-time Chairman) of our Bank. He holds a masters’ degree in arts (economics) from the University of Delhi and a Ph.D
in philosophy from the University of Delhi. He has significant experience in the banking sector. Previously, he has worked in the capacity of a Director at Asian Development Bank. He has also served as the Chief Economic Advisor to the Ministry of Finance, Government of India has worked as an economist in the International Monetary Fund and has been involved with the World Bank.
He has been a director on our Board since July 10, 2015.
Chandra Shekhar Ghosh, is the Managing Director and Chief Executive Officer of our Bank. He holds a masters’ degree in science (statistics) from Dhaka University. He has significant experience in the finance and microfinance sector. Previously, he has been associated with a President at the Bengal Chamber of Commerce and Industry, Chairman of Eastern Region Economic Affairs and Finance & Taxation sub-Committee of Confederation of Indian Industry.
He has been a director on our Board since July 10, 2015.
Bhaskar Sen, is an Independent Director of our Bank. He holds a bachelors’ degree in commerce from Calcutta University. He is a Certified Associate of Indian Institute of Bankers. He has significant experience in the banking sector. Previously, he has worked United Bank of India as the chairman and managing director and at Dena Bank as an executive director.
He has been a director on our Board since December 23, 2014.
Boggarapu Sambamurthy, is an Independent Director of our Bank. He is a chartered accountant from the Institute of Chartered Accountants of India.He has significant experience in the banking sector. Previously, he has worked as the chairman and managing director of Corporation Bank and the director of the Institute for Development and Research in Banking Technology.
He has been a director on our Board since July 9, 2015.
Chintaman Mahadeo Dixit is an Independent Director of our Bank. He is a chartered accountant from the Institute of Chartered Accountants of India.He has significant experience in finance and accountancy sector. Previously, he has worked at Life Insurance Corporation and in the capacity as a senior partner in GD Apte& Co., Chartered Accountants. He has worked in the capacity of Director in Indian Bank.
He has been a director on our Board since July 9, 2015.
Company Business:
(i) We are a commercial bank focused on serving underbanked and underpenetrated markets in India. We have a banking license that permits us to provide banking services pan-India across customer segments.
(ii) We currently offer a variety of asset and liability products and services designed for micro banking and general banking, as well as other banking products and services to generate non -interest income.
(iii) We were incorporated on December 23, 2014 and began operations on August 23, 2015 when Bandhan Financial ServicesLimited (“BFSL”), our ultimate parent company, transferred its entire microfinance business to us and we simultaneously commenced general banking activities. We launched our general banking business on August 23, 2015 by opening a greenfield network of 501 bank branches and 50 automated teller machines (“ATMs”)
(iv) Our distribution network is particularly strong in East and Northeast India, with West Bengal, Assam and Bihar together accounting for 57.75% and 58.13% of our branches and DSCs, respectively, though our focus is to expand across India.
Capital Structure:
| Authorized Share Capital (5,000,000,000 shares at FV@10) | 5000cr |
| Issued, Subscribed,& Paid-up Share Capital Before Issue (1,095,141,034 at FV@10) | 1095.142 cr |
| Present Issue (11,92,80,494 Shares at FV@10) | 119.28 cr |
| Retail Quota(<2 Lkah) | 50% |
| HNI & QIB Quota(>2 Lakh) | 50% |
| Paid Up Capital after the issue | 1214.422 cr |
Financials of Bandhan Bank Limited IPO:
| 1. Balance Sheet Snippet [ All Calculations are for FY 16-17] | |
| (i) Shareholders’ Fund[Equity] Value | 44464.55 Million |
| (ii) Asset | 302360.90 Million |
| (iii) Liability | 257896.35 Million |
| (v) Net Worth(Asset- Liability) | 44464.55 Million |
| (vi) RONW(PAT/Net Worth) | 25% |
| 2. Profit n Loss Snippet [last 2 years data is available] | |
| (i) Revenue of last 2 years is growing at approx. CAGR of 16%. (Excellent) | |
| (ii) As far as PAT goes, the company is growing at CAGR of 28.56%(Excellent) | |
| (iii)Margins(PBT/Revenue): 38-40%(Excellent) | |
| (iv) EPS= 11( post Issue) | |
| (v) P/E(post issue)=35(reasonably priced)at the cutoff price of 375 | |
| 3. Cash Flow Statement | |
| The company is generating positive cash flow which is a good sign for any business to sustain in long term. | |
Comparison With Peers:
| Name | FV | EPS | P/E | RONW |
| Bandhan Bank Limited | 10 | 11 | 35 | 25.01% |
| Axis Bank | 2 | 16.54 | 32.26 | 7.04% |
| HDFC Bank Limited | 2 | 59.95 | 30.75 | 16.65% |
| IndusInd | 10 | 48.06 | 34.59 | 13.90% |
| ICICI Bank | 2 | 17.51 | 17.43 | 10.84% |
| Kotak Mahindra bank | 5 | 26.89 | 37.47 | 12.86% |
| RBL bank | 10 | 12.61 | 41.21 | 10.29% |
| Yes bank | 10 | 17 | 17 | 15.15% |
Recommendation on Bandhan Bank Limited IPO:
Review and Recommendation of
Bandhan Bank Limited IPO
from our side is: Subscribe Bandhan Bank for short to medium period of investment.Lead Manager of Bandhan Bank Limited IPO:
Registrar of Bandhan Bank Limited IPO:
Company Address:
DN 32, Sector V, Salt Lake,
Kolkata 700 091
Phone No.: (033) 6609 0909
Fax: (033) 6609 0502
E-mail: investors@bandhanbank.com
Website: www.bandhanbank.com
Bid Details of Bandhan Bank Limited IPO as on
19-Mar-2018 22:00:02 IST
Discussion on Bandhan Bank Limited IPO:
30 Comments
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Bandhan Bank IPO turns early staff into millionaires https://www.livemint.com/Money/yblaI9qQ5oi6aqXD3B6tTM/Bandhan-Bank-IPO-turns-early-staff-into-millionaires.html
*Date: 27/03/2017 NSE BULK DEALS*
_Bandhan Bank Limited_
NOMURA INDIA INVESTMENT FUND MOTHER FUND buys 83,34,456 at an average price of ₹478.76
Total volume traded till now 14:40 PM in Bandhan Bank is whopping 7 cr. This shows rosy days will hit Indian market soon. The March month was tepid due to liquidity crunch mainly due to MFs redemption cycle and saving on taxes due to LTCG. The FII flows were completely out of the market. However, we may see buying from April onwards.
Bandhan Bank has market cap of approx 55000cr already which is greater than all govt banks except SBI. It is now 8th largest listed Indian bank by mkt cap!!!😇😇
What a bumper listing of Bandhan Bank. Whoa….!!!!!! Super Gain of more than 30% from the issue price…
One minute silence for those who had sold in grey😀
What abt who bought in grey at lower rate and holding 😀
Live Pre-open prices
BSE =>>> http://www.bseindia.com/markets/Equity/listingstream.aspx?expandable=1
NSE =>>> https://nseindia.com/live_market/dynaContent/live_analysis/sml/smlOrderBook.jsp?param=BANDHANBNKEQG&symbol=BANDHANBNK
Bandhan IPO
GMP ₹52 +/- 0.50
Bandhan IPO
GMP ₹37 +/- 0.50
Another Company identical to Bandhan …
SKS = Bharat Financial Inclusion = 52 week high on 22nd March 2018
Gmp of bandhan 34
*Bandhan Bank Limited*
BSE Scrip Code: 541153
NSE: BANDHANBNK
ISIN No: INE545U01014
Issue price 375
Lot 40
*LISTING 27 /03/2018*
Bandhan IPO
GMP ₹31 +/- 0.50
I applied 3 and got 3. whoa!!!! expecting good listing gain..
Is it due to overall market condition which has gone down due to global trade war between US and China???
Why GMP falling????
Bandhan IPO ⬇
GMP ₹28 +/- 0.50
Kostak 1,050
Bandhan IPO
GMP ₹36 +/- 0.50
Kostak 1,350
Bandhan IPO
GMP ₹36 +/- 0.50
Kostak 1,400
Nice!
Bandhan IPO
GMP ₹32 +/- 0.50
Kostak 1,200
Game changer bandhan Bank open 50+…..information for good source.
Bandhan IPO
GMP ₹29 +/- 0.50
Kostak 1,100
Hii sir my name is kaxil patel pls give me ur mobile number i m intrested for work with u and i m hni client so pls give me your number my watsapp number is 9662505184 and im from gujarat
GMP ₹26 +/- 0.50
Kostak 1000
Bandhan Bank is a serious bet for both short as well as long term. The company’s RONW around 25% is highest among all peers listed in the market. If we assume PAT growth to be 28% , then in FY 18-19 , the EPS would be around 14. Hence at current PE of 35 the price would be around 490. So in next one year we can get easy upside of atleast 30%.
Dear All,
Be aware that all kind of agents infest our IPO forums.
They will utilize all means to create artificial demand in IPOs which may include same person using multiple IDs for various comments, create new IDs to suppress opposing view and also create newer IDs to promote their own view.
A set of ID will justify some analysis of another ID and promise 40-50% listing gains with no time frame mentioned. When the IPO listing fails IDs will go to sleep and then re-surface when there is some movement in the scrip completely forgetting that their comment was for listing gain.
Let me repeat that they will utilize all the means, I really mean ALL (of ANY KIND). I can keep on going on and on and on but my only suggestion to all of you is
Do not blindly follow anyone or any ID (including me) irrespective how popular that ID is in online forum. Online popularity can also be fabricated, bought, arranged etc etc etc. There is a complete industry to propagate specific online opinions which serve the purpose of specific persons or groups.
Be safe and be prosperous.
Is the IPO worth investing
Yes Vinay! Very good bank indeed. It should give multi-fold returns if you hold it for 2-3 years from now.