IFC-backed Bandhan files for India IPO

Bandhan Bank will sell up to 98 million new shares in the offering, while IFC will sell 22 million shares, according to a prospectus. Pricing for the shares has not been announced. IFC currently holds 54 million shares, representing a 4.9% stake in the bank.

BFSL launched Bandhan Bank in 2015 after receiving a banking license from the Reserve Bank of India the previous year. The parent company also transferred its micro-finance business to the subsidiary. IFC bought its stake at this time for INR2.3 billion ($36.6 million), with GIC Private purchasing a stake of approximately the same size for the same amount, and SIDBI buying 3.5 million shares for an undisclosed amount. GIC and SIDBI will not exit their holdings in the offering.

Bandhan Bank focuses on serving underbanked and underpenetrated markets in India across a variety of customer segments. As of September 2017, the company had 864 branches and 386 ATMs serving over 1.87 million general banking customers, with a deposit base of INR254 billion.

The microfinance business that it inherited from its parent has grown from 2,022 service centers and 6.8 million customers in August 2015 to 2,546 service centers and 9.5 million customers as of September 2017. Outstanding microloans at the time amounted to INR197 billion, out of a total loan book of INR221 billion.

For the year ended March 2017, Bandhan Bank recorded INR43 billion in revenue, up from INR17 billion the year before. Net profit over the same period grew from INR2.8 billion to INR11.1 billion.

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• Topics
• South Asia
• Financials
• IPO
• India
• IFC
• GIC Private
• SIDBI Venture Capital
• Exit
• Financial Services