BANDHAN BANK LIMITED IPO (BANDHAN BANK IPO)

DETAIL

ENVIABLE TRACK RECORD

Started as a microfinance company in 2001, Kolkata-based Bandhan received a banking licence from
the Reserve Bank of India (RBI) in 2014 and is now aiming to raise up to Rs 36.63 billion through its IPO
via fresh issue of shares. The existing shareholders, such as IFC, are looking to sell part of their holdings,
worth Rs 8.11 billion, through an offer for sale.
The IPO will also help the bank meet the RBI’s licensing requirements. According to the RBI guidelines,
all the newly licensed banks are required to get listed within three years from the date of licensing.
With this capital infusion, the bank will look to sustain its loan growth, which however may not
necessarily come through expansion of its branch network. “We have done most of investments in terms
of expansion of branch network. Going forward, growth rate in terms of branch network will be much
slower as the bank has enough branch network capacity (as of now),” says Sunil Samdani CFO (chief
financial officer) of Bandhan.
Bandhan has also proven itself as one of the strongest banks in terms of asset quality, profitability, etc.
While the bank’s net NPA (non-performing assets) stood at 0.8 per cent as on December 31, 2017, its
return on equity (RoE; a profitability measure relative to the investment made by equity shareholders)
was hefty at 25.6 per cent.

BANDHAN BANK PRODUCTS:

1. Retail loans including micro loans, SME loans and small enterprise loans
2. Savings accounts, current accounts and a variety of fixed deposit accounts
3. Other banking products and services including debit cards, internet banking, mobile banking, EDC-
POS terminals, online bill payment services and the distribution of third-party general insurance products
and mutual fund products.

BANDHAN BANK STRENGTHS:

1. Operating Model Focused on Serving Underbanked and Underpenetrated Markets (microfinance)
2. Consistent Track Record of Growing a Quality Asset and Liability Franchise
3. Extensive, Low Cost Distribution Network
4. Provide accessible, simple, cost-effective and innovative financial solutions
5. Robust Capital Base
6. Maintaining focus on micro lending while expanding further into other retail and SME lending
COMPANY PROMOTERS:
The Promoters of the Bank are BFHL, BFSL, FIT and NEFIT.
1. Bandhan Financial Services Private Limited (BFSL) is a non-banking financial institution for purposes
of carrying out non-banking financial activities without accepting public deposits.
2. BFSL was accorded in-principle approval by the RBI on April 9, 2014 for setting up a bank in the
private sector. The promoter of BFHL is BFSL.
3. FIT is an irrevocable charitable trust with objectives including inter alia eliminating functional
illiteracy in India by making education economically relevant.
4. NEFIT is an an irrevocable charitable trust with objectives including inter alia eliminating illiteracy in
India by making education available to the underprivileged.

COMPANY FINANCIALS:

Summary of financial Information (Restated)

For the year/period ended (in Rs.

Particulars million)

31-Mar-17 31-Mar-16 31-Mar-15

Total Assets 302,360.90 197,565.00 5,268.88

Total Revenue 43,201.23 17,312.54 79.53

Profit After Tax 11,119.52 2,752.47 5.76

OBJECTS OF THE ISSUE:

 The Issue comprises of a Fresh Issue and an Offer for Sale.

 Fresh Issue
The object of the fresh issue is to augment Bank's Tier-I capital base to meet Bank's future capital
requirements.

 Offer for Sale

The Selling Shareholders will be entitled to the respective portion of the proceeds of the Offer for Sale.
ISSUE DETAIL:
 Issue Open: Mar 15, 2018 - Mar 19, 2018
 Issue Type: Book Built Issue IPO
 Issue Size: 119,280,494 Equity Shares of Rs 10 aggregating up to Rs 4,473.02 Cr
› Fresh Issue of 97,663,910 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
› Offer for Sale of 21,616,584 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
 Face Value: Rs 10 Per Equity Share
 Issue Price: Rs 370 - Rs 375 Per Equity Share
 Market Lot: 40 Shares
 Minimum Order Quantity: 40 Shares
 Listing At: BSE, NSE