Bandhan Bank becomes 8th most valued bank on stellar debut

New Delhi: Shares of Kolkata-based Bandhan Bank made a stellar debut at the bourses on Tuesday and ended over 27 percent higher against its issue price of Rs 375. The company's market valuation stood at Rs 56,920.65 crore making it India's 8th most valued bank.

The stock listed at Rs 485, a sharp gain of 29.33 percent over the issue price on BSE. Intra-day, it jumped 32.90 percent to Rs 498.40. It finally ended at Rs 477.20, up 27.25 percent.

On NSE, shares of the company zoomed 27.16 percent to settle at Rs 476.85.

In terms of equity volume, 139.07 lakh shares of the company were traded on BSE and over 9 crore shares changed hands on NSE during the day.

The Rs 4,473-crore initial public offer of Bandhan Bank was subscribed 14.62 times during March 15-19.

The portion set aside for qualified institutional buyers (QIBs) was subscribed 2.33 times, non institutional investors 24 percent and retail investors 33 percent. The IPO was of up to 119,280,494 shares comprising of a fresh issue of up to 97,663,910 shares and an offer for sale of up to 21,616,584 shares (including anchor portion of 35,784,147 shares).

The price band for the offer was fixed at Rs 370 to Rs 375.

Kotak Mahindra Capital Company, Axis Capital, Goldman Sachs (India) Securities, JM Financial and J P Morgan India managed the issue.

The Reserve Bank of India's guidelines mandated the bank to get itself listed within three years from the commencement of banking operations. The bank started its operations in August 2015.

Bandhan Bank has posted an 18.21 percent year-on-year growth in its net profit for the quarter ended September at Rs 331 crore. Operating profit of the Kolkata-based lender rose 27.62 percent to Rs 596 crore during the quarter under review.

The current account and savings account (CASA) of the bank was 28.18 percent of total deposits in the September-ended quarter. Bandhan Bank's net interest margin (NIM) in July-September stood at 9.33 percent, lower than 10.17 percent in the corresponding quarter a year ago.

With PTI Inputs