The Kolkata headquartered Bandhan Bank has initiated its public listing process and it is expected to hire investment bankers for the process by middle of September, said four people directly familiar with the matter.
“The company will raise money through an offer for sale process and it is looking to raise at least Rs 2000 crore to anywhere up to Rs 4500 crore. They haven’t crystalised the amount yet,” said the first person mentioned above.
Chandra Shekhar Ghosh, managing director and chief executive officer at Bandhan Bank in an emailed response confirmed that the bank has initiated IPO process but declined to offer any stake sale size or amount it is seeking to raise from the program.
“We have started the process of hiring investment bankers….” Ghosh said. He further added that the investment bankers will advise on the fund raising amount depending upon business requirements.
The entire listing process is being driven as part of complying with Reserve Bank of India’s (RBI) regulations wherein a universal bank has to list within three years of its launch. Interestingly on August 23, the company will complete two years of its launch.
“Almost all large investment banks have pitched for the mandate as it is a very large issuance program when it comes to the banking sector. Also their books are good and hence people are keen on this mandate. The bank is looking at a listing by early 2018,” said the third person mentioned above.
On July 2, the company reported its numbers and it clocked a 35% rise in net profit to Rs 327 crore for the quarter ending June, despite higher provisions to cover rising bad loans. Its operating profit before provisions and taxes was Rs 557 crore, 45% up from the year ago period.
The bank’s advances portfolio grew 35% year on year to Rs 21,389 crore with about 90% of it consisting of micro loans. Its deposits grew 51% to Rs 22439 crore.
Since January, 15 companies have raised Rs 12,589.9 crore through IPOs this year and the street is expecting four mega insurance company listings which is expected to raise approximately Rs 35000-40000 crore. The buoyant capital markets has witnessed significant pick up in qualified institutional placements led by banks which raised tier I capital as part of its annual capitalization process. So far in 2017, 17 companies have raised Rs34,181.56 crore through QIPs .