Kolkata-based Bandhan Bank has completed a successful IPO on the Bombay Stock Exchange and the National Stock Exchange of India. The issue was oversubscribed 14.5 times and took place in March.
According to Cyril Amarchand Mangaldas, it was the largest IPO by a bank in the country to date and the first IPO by a bank in the eastern region.
It was also the first time a company was able to meet the profitability threshold for the IPO by using a business transferred to it. “Since Bandhan Bank as an entity has a limited operating history, it did not meet one criterion under regulation 26(1) of the SEBI ICDR [Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)] Regulations, or what is generally known as the ‘profitability criteria’,” Khaitan & Co partner Abhimanyu Bhattacharya told India Business Law Journal.