Bandhan Bank IPO fully subscribed on final day of bidding

Bandhan Bank IPO: Bandhan Bank's initial public offer has already been over-subscribed by 1.23 times on the third and final day of the bidding process, which will end at 5:00 pm later today. As of 12.00 pm, the IPO received bids for 97,487,160 shares against the total issue size of 83,496,347, according to data available with NSE. 

The quota for qualified institutional buyers (QIB) saw 2.92 times subscription while the NII (Non-Institutional Investors) category was subscribed 0.28 times. RII (Retail Institutional Investors) saw 0.64 times subscriptions. 

Bandhan Bank IPO had been subscribed 88 per cent by Friday. On Wednesday, it had raised Rs 1,342 crore from anchor investors. 

Bandhan Bank IPO is India's biggest ever initial public offering (IPO) by a bank to raise Rs 4,473 crore in a price band of Rs 370-375 per share. Although the Kolkata-based bank has been priced at a premium, analysts recommend subscribe and hold for the long-term. However, listing gains could be tepid, they added.  

The public issue of Bandhan Bank consists of an offer for sale (OFS) of 2.16 crore shares (1.97 per cent of pre-issue stake) sold by the two shareholders – 1.41 crore shares (1.28 per cent of equity capital) by International Finance Corporation and 0.76 crore shares (1.28 per cent of equity capital) by IFC FIG Investment. The IPO also consists of a fresh issue of 9.77 crore shares. 

The amount thus received by the bank will be utilised mainly to augment the bank’s Tier-I capital base to meet the future capital requirements. 

Kotak Mahindra Capital Company, Axis Capital, Goldman Sachs (India) Securities, JM Financial and JP Morgan India are managing the issue.