Bandhan Bank Makes Stellar Trading Debut, Shares End 27% Higher

Bandhan Bank shares made a strong trading debut on Tuesday, rising as much as Rs 498.40 on the Bombay Stock Exchange (BSE). At the day's highest point, Bandhan Bank shares touched Rs 499 on the National Stock Exchange (NSE) - a 33 per cent premium compared with the issue price of Rs 375. Bandhan Bank shares finally closed the day at Rs 477.20 with a gain of a whopping 102.20 points or 27.25 per cent on the BSE. Bandhan Bank's IPO worth Rs 4,500 crore - the biggest ever for an Indian bank - was subscribed 14.62 times last week, driven by strong demand from institutional investors. The public offered had opened on March 15 and closed on March 19.

Bandhan Bank managing director and CEO C S Ghosh had expected a bullish response from the market as the IPO was well received by the investors and retail individuals, according to news agency Press Trust of India. (Read more)

The bank sold 11.93 crore equity shares, comprising a fresh issue of up to 9.77 crore equity shares, and an offer for sale (OFS) of up to 1.41 crore equity shares by IFC, and up to 75 lakh equity shares by IFC FIG.

Bandhan Bank has 893 branches and 433 ATMs. The Kolkata-headquartered bank has two divisions: General Banking and Micro Banking, offering a suite of retail financial solutions including a host of savings and loan products. It has nearly 27,300 employees on roll, according to its website. 

Bandhan Bank started as a microfinance company in 2001 and received in-principle approval of the Reserve Bank of India (RBI) to set up an universal bank in 2014. Bandhan Bank Limited was incorporated on December 23, 2014 as a wholly-owned subsidiary of Bandhan Financial Holdings Limited. 

The company received its final banking licence in June 2015.

At 1:23 pm, Bandhan Bank share price was 28.89 per cent higher at Rs 483.35 on the National Stock Exchange, whose benchmark Nifty index was 34 points higher at 10,165.