Mumbai: The Rs4,470 crore initial public offering (IPO) of Kolkata-based Bandhan Bank Ltd witnessed an overall subscription of 14.6 times on Monday, the last day of the share sale, data from stock exchanges showed.
As of 6 pm, the portion of the share sale reserved for institutional investors saw a subscription of 38.67 times, while those kept aside for high net-worth individuals (HNIs) and retail investors were subscribed 13.89 times and 1.15 times, respectively.
Bandhan Bank had set a price band of Rs370-375 per share for its IPO. At the upper end of the price band, the share sale values the lender at Rs44,730 crore.
Bandhan Bank’s share sale comprises a fresh issue of 97.66 million shares, which at the upper end of the price band will fetch the company Rs3,660 crore. The proceeds from the fresh issue will be used to augment the bank’s tier-I capital base to meet future capital requirements of the bank.
Bandhan started its banking operations in August 2015. As of 31 December, Bandhan Bank had 887 bank branches and 430 ATMs. The lender’s current offerings include retail loans, micro loans, micro, small and medium enterprise (MSME) loans and small enterprise loans.
Hindustan Aeronautics IPO
On Monday, the Rs4,229 crore IPO of state-owned Hindustan Aeronautics Ltd (HAL) witnessed an overall subscription of 45%, the second day of the share sale.
As of 5 pm, the portion of shares reserved for institutional investors in the HAL IPO saw a subscription of 77%, while those kept aside for retail investors and high net-worth individuals (HNIs) were subscribed to the extent of 20% and 1%, respectively.
HAL has set a price band of Rs1,215 to Rs1,240 per share for the public offering. The offer will close on 20 March.
HAL’s IPO is a pure secondary offering, where the government of India is selling a total of 34.10 million shares, representing a 10.2% stake in the company.
HAL is engaged in the design, development, manufacture, repair, overhaul, upgrade and servicing of aircraft, aero engines, helicopters, avionics, accessories and aerospace structures. It is the largest public defence public sector undertaking (PSU) in the country and makes fighter planes such as Su-30 MkI, MiG-21, MiG-27 and Jaguar.
Sandhar Technologies IPO
The Rs512 crore IPO of auto parts maker Sandhar Technologies Ltd saw a subscription of 5% on Monday, the first day of its share sale.
Sandhar has fixed a price band of Rs327-332 per share for its IPO. The offer closes on 21 March.
Incorporated by Jayant Davar in 1987, Sandhar started operations as a supplier to the Hero group. The firm manufactures 21 categories of products including safety and security systems such as lock assemblies, mirror assemblies, operator cabins for off-highway vehicles, aluminium spools, spindles, and hubs.