Home Business IFC to dilute 1.8 % stake in Bandhan Bank

IFC to dilute 1.8 % stake in Bandhan Bank


(G.N.S) Dt. 01
International Finance Corporation BSE -4.94 % is looking to dilute its 1.8% stake in Bandhan Bank when the bank goes public later this year, while another overseas shareholder Singapore’s sovereign wealth fund GICBSE -0.04 % will stay put.
IFC and Singapore’s sovereign wealth fund GIC hold 5% each in the bank at present, Bandhan Bank managing director Chandra Shekhar Ghosh added. IFC was the first overseas investor in Bandhan since 2011 while GIC picked up stakes only in 2015 after Bandhan received the banking licence. Small Industries Development Bank of India holds less than 1% in it.
The Kolkata-based entity, the first one to begin universal banking journey this decade in the private sector space, announced on Monday the plan to sell up to 11.9 crore equity shares through an initial public offer, and that it has filed a draft red herring prospectus with the Securities & Exchange Board of India to this end.
The IPO will consist of fresh issue of up to 9.76 lakh equity shares of face value of Rs 10 each while IFC along with IFC FIG Investment Company will sell 2.16 lakh shares between them.
Bandhan Bank started operations on August 23, 2015, and the Reserve Bank of India mandated it to go public within three years. Bandhan was working as a microfinance company since 2001. Micro loan constitutes around 90% of the bank’s Rs 22,000 crore advance portfolio even today.
The IPO will be sold at a premium to be determined through a book building process, and a minimum 35% of the issue will be available for retail investors in line with SEBI rules. The shares are proposed to be listed on BSE and NSE.
The book running lead managers to the Issue are Kotak Mahindra Capital Company, Axis Capital Goldman Sachs (India) Securities, JM Financial Institutional Securities and JP Morgan India.
The Kolkata-based bank has earned Rs 658 crore net profit in the first half of FY18. It caters to over 1.1 crore customers across 33 Indian states and union territories, through over 850 branches and about 2,500 doorstep service centres.

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