Bandhan Bank Limited IPO

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Bandhan Bank Limited IPO Stock Quote & Charts

617.50

+2.83%

  • Open: 599.00
  • High - Low: 633.00 - 590.35
  • Previous Close: 600.50
  • Total Traded Volume: 3883898
  • Updated On: 19-Jul-2018

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 as per DRHP:

 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.

Registrar of Bandhan Bank Limited IPO:

  1. Karvy Computershare Private Limited

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

No.of shares offered No. of shares bid No. of total times
23,856,099 922,627,480 38.67
17,892,075 248,599,360 13.89
41,748,173 50,295,760 1.20
- - -
83,496,347 1,221,522,600 14.63
No.of shares offered No. of shares bid No. of total times
23,856,099 475,164,240 19.92
17,892,075 139,985,120 7.82
41,748,173 36,911,600 0.88
- - -
83,496,347 652,060,960 7.81
No.of shares offered No. of shares bid No. of total times
23,856,099 447,463,240 18.76
17,892,075 108,614,240 6.07
41,748,173 13,384,160 0.32
- - -
83,496,347 569,461,640 6.82

Discussion on Bandhan Bank Limited IPO:

    *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…

    Another Company identical to Bandhan …

    SKS = Bharat Financial Inclusion = 52 week high on 22nd March 2018

    *Bandhan Bank Limited*

    BSE Scrip Code: 541153

    NSE: BANDHANBNK

    ISIN No: INE545U01014

    Issue price 375

    Lot 40

    *LISTING 27 /03/2018*

    Is it due to overall market condition which has gone down due to global trade war between US and China???

      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

    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.

      Yes Vinay! Very good bank indeed. It should give multi-fold returns if you hold it for 2-3 years from now.