Bandhan Bank main shareholder selling ₹10,500 crore shares in block trade
Those shares are being offered at a price, as being mentioned, flooring ₹311.1 ($4.16) each, on the authority of the terms. Books will close by 11:30 pm in Hong Kong on Aug. 2. and trading will start on Aug. 3.
Credit Suisse Securities (India) Private Limited, J.P. Morgan India Private Limited, Goldman Sachs (India) Securities Private Limited and JM Financial Institutional Securities Limited are joint bookrunners for the deal.
Bandhan Bank is inspecting options to additionally bring down promoter's stake in the bank to the prescribed 40% of the paid-up equity capital, the lender had stated in its annual report for 2019-20.
In accordance with the licensing guidelines issued by the RBI, Bandhan Financial Holdings Limited (BFHL or NOFHC) – the holding company of the bank – is required to bring its surfeit shareholding to 40% of the paid-up equity capital of the lender within three years from commencement of operations.
Bandhan Bank had inaugurated operations as a universal bank in August 2018.
"The Bank and NOFHC (non-operative financial holding company) have been exploring various options/opportunities to bring the shareholding to the prescribed level," it mentioned in the annual report for FY20.
The Kolkata-based private sector lender stated that it has achieved a noteworthy milestone in its short life-span of 4 years by successfully completing the process of amalgamation of GRUH Finance into the bank, effective from October 17, 2019.
Moreover, GRUH Finance - the affordable housing arm of HDFC Ltd - was melded with Bandhan Bank in last October for meeting the regulatory requirements on the holding company's stake.
Bandhan Bank, that transformed itself from a micro-finance lender to a universal bank, holds two types of banking outlets – bank branches, nonetheless, catering to general banking customers and Banking Units (BU) that cater to micro banking customers.
Also, as of information, the bank witnessed nearly 47% sprint in its business to ₹1.29 trillion in FY20. Deposits sprouted by 32% to ₹57,082 crore during the year, while the advances jumped by 60.5% to ₹71,846 crore.