Issue Date:?15th Mar ? 19th Mar 2018
Price Band(Rs):?370-375 |??Lot Size (No. of Share):?40
Company Background
Incorporated in 2014, Bandhan Bank Limited is Kolkata, West Bengal based commercial bank focused on micro banking and general banking services. Bandhan Bank has a license to provide banking services pan-India across customer segments. Bank offer a variety of asset and liability products and services designed for micro banking and general banking, as well as other banking products and services to generate non-interest income.
Issue Details
| Issue Opens | 15-Mar-18 |
| Issue Closes | 19-Mar-18 |
| Issue Size(Rs in Crore) | 4,473.02 |
| Face value(per equity share) | 10 |
| Price Band(Rs.) | 370-375 |
| Lot Size(No of Share) | 40 |
| No of Shares on Offer(Crore) | 11.92 |
| QIB(%) | 50% |
| Non-Institutional(%) | 15% |
| Retail(%) | 35% |
| Commencement of Trading | 27-Mar-18 |
Strengths
- Consistent Track Record of Growing a Quality Asset and Liability Franchise.
- Extensive, Low Cost Distribution Network.
- Provide accessible, simple, cost-effective and innovative financial solutions.
- Robust Capital Base.
- Maintaining focus on micro lending while expanding further into other retail and SME lending.
Concerns
- Concentration risk as substantial operations in eastern India
- Major portion of interest from advances are due within a year.
- Microcredit lending has its own unique risks.
Our View
The price band of INR 370-375 per share and on restated FY17 EPS of Rs.10.15, P/E ratio works out to 37x. Based on last three years restated consolidated EPS of 6.21, P/E ratio works out to be 60x. There are listed peers Gruh Finance trading at highest P/E of 62x and yes bank at lowest at 3.87x, other peers AU small finance Bank(59x), IDFC Bank(18x). Industry average is 33.7x. Hence, Bandhan bank IPO is reasonably priced.
Overall earnings profile looks comfortable, with premium valuations expected to remain. However, with PNB fraud, banking sector is in turbulence now. Banking stocks are taking corrections due to this. By mid March, banks would come back to RBI about high value loans and their risk factors. High Risk investors can invest in this IPO for long term.
Important Dates
- Bandhan Bank IPO Allotment date expected on March 22, 2018
- Amount will unblock (ASBA ) March 23, 2018.
- Shares will credit in Demat account the expected on March 24, 2018.
- Bandhan Bank share listing on NSE & ?BSE? Expected March 24, 2018
Bandhan Bank IPO Allotment Status Online?
Check the allotment on the given below link with PAN r or Application number or Demat account ?No..:-
- To Check Your IPO ?Online Allotment Status?
- Go to Application Status
- Select IPO
- Enter your PAN Number / Application No /DP Client ID.