Bandhan Bank hires Goldman Sachs, JPMorgan Chase and three others to manage IPO




The Kolkata-based lender had posted Rs 1,112 crore net profit for the FY18. NSEBSEKotak Mahindra BankLoading data…

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      ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIES Private sector Bandhan Bank has taken the first concrete step towards its proposed initial public offering by hiring Goldman Sachs and JPMorgan Chase along with three others to advise it on the share sale.

      The International Finance Corporation and GIC-backed Bandhan, which along with IDFC Bank received universal banking license in 2014, is mandated to be publicly listed by August 2018.

      The two-year old lender said it did not decide the proposed size of the share sale and its timing but the investment banking circle is abuzz with a possible IPO size of Rs 5000-6000 crore.

      “We are well capitalised,” said Bandhan Bank Managing Director Chandra Shekhar Ghosh. “We don’t need capital immediately but we are going for listing as per the the rules.”

      According to Securities & Exchange Board of India norm, companies need to offload a minimum 10% in the IPO.

      There can be two possibilities for Bandhan. It can issue fresh equity shares or its existing investors can offload or pare their stake. “The final decision on the proposed IPO will be subject to all regulatory approvals,” the bank said.

      Axis Bank, JM Financial and Kotak Mahindra Bank are other lead managers for the IPO.

      The Kolkata-based Bandhan Bank, the first microfinance company to transform into a bank, has its net profit at Rs 1,112 crore in its first full year of operation in FY17. Its June quarter net profit rose 35% year-on-year at Rs 327 crore with net interest margin as high as 10.75%.

      The bank’s advances portfolio grew 35% to Rs 21,389 crore at the end of June with about 90% of it consisting of micro loans. Its deposits grew 51% to Rs 22439 crore.

      It caters to more than 1.1 crore customers across 33 Indian states and union territories, through 844 branches, 2,485 doorstep service centres and 384 ATMs.




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