Incorporated in 2014, Bandhan Bank Limited is a commercial bank focused on micro banking and general banking services. The bank offers 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. Bandhan Bank has 864 branches and 386 ATMs serving over 1.87 million general banking customers. The bank's distribution network is strong in East and Northeast India, with West Bengal, Assam, and Bihar.
Strong revenue growth and high margins posted in past 3.5 years. In the upper price band of INR. 375 and FY17EPS, P/E works out to 37x, which indicates well priced as compared to its peers and Industry P/E at 77x. Current conditions in banking domain definitely pose uncertainty.
Taking all these factors under consideration, we recommend to wait for a slight correction and discounted price and can be considered for medium term. AVOID during listing.
The promoters of the company are:
- Bandhan Financial Holdings Limited
- Bandhan Financial Services Limited
- Financial Inclusion Trust
- North East Financial Inclusion Trust
Summary of finance performance in INR Millions
Objects of Issue
The Issue comprises of a fresh issue and an Offer for Sale (OFS):
- Fresh Issue
The object of the fresh issue is to augment the 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.
- Kotak Mahindra Capital Company Limited
- Axis Capital Limited
- J M Financial Limited
- J.P. Morgan India Private Limited
- Goldman Sachs (Indian) Securities Private Limited
First published on 13 Mar, 2018 on stocks94.com.
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