Shares of Bandhan Bank Limited listed on the BSE and NSE and had a great debut. The company had a listing ceremony at the BSE as well. The company had tapped the capital markets with its simultaneous offer. The company had issued 9,76,63,910 new shares and sold 1,40,50,780 shares through the offer for sale route. The price band was Rs 370-375.
It had earlier allotted 3,57,84,147 shares to 65 anchor investors comprising of 94 entities. The issue was valued at a price earnings multiple of 36.45 to to 36.95 times based on March 2017 earnings of Rs 10.15. The price to book was even more at 9.23 times based on the NAV of Rs 40.60.
The issue was subscribed38.67 times by QIB’s, 13.89 times by HNI’s and 1.20 times by retail. There were 10,81,506 applications received in the issue. On the basis of number of applications received the issue is subscribed 1.03 times in the retail category.
The discovered price on the BSE was Rs 485 while it was Rs 499 on the NSE. The traded volume at the discovered price was 25.47 lakhs at the BSE and 204.55 lakh shares at the NSE. The high of the day was Rs 498.40 on the BSE while it remained the discovered price of Rs 499 on the NSE. The low of the day was an identical Rs 455 on both the BSE and NSE. The close was Rs 477.20 on the BSE and Rs 476.85 on the NSE.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 485.00 | 498.40 | 455.00 | 477.20 | 102.20 | 27.25 | 477.74 | 13907287 | 6285467 | 45.20 |
| NSE | 499.00 | 499.00 | 455.00 | 476.85 | 101.85 | 27.16 | 482.06 | 91036634 | 43942456 | 48.27 |
| Total | 104943921 | 50227923 | 47.86 |
The traded volume was a massive 1049.43 lakh shares which was 93.94% of the IPO size of 1171.14 lakh shares. The delivery volume was 502.27 lakh shares which was 47.86% of the traded volume and 44.96% of the IPO size. Huge by any standard. If one considers the non-anchor portion the traded volume was 138.21% and delivery percentage 66.15%. The weighted average of the day’s trade was Rs 477.74 and Rs 482.06 respectively. The close was Rs 477.20 and Rs 476.85, marginally below the weighted average. The gain, 27.25% on the BSE and 27.16% on the NSE.
While delivery volumes of over 502 lakhs were recorded, there was just one institutional trade reported in the bulk trade. Nomura India bought 83.34 lakh shares on the NSE at an average of Rs 478.76. The issue was expensive and HNI’s lapped it up because there was grey market active. Of the over half a dozen shares open at the same time, this was the only one which had a grey market. The cost of funding for the leveraged investor was about 43 paisa per time or Rs 6 per share. Initial indications suggested that the unofficial market was quoting around 4 times this cost, suggesting that the HNI would make a killing. Indeed, he did and made about 16 times his cost of funding and rounded of 2017-2018 on a great note for himself.
A great start to the listed life of Bandhan Bank Limited. It needs to deliver on numbers quarter after quarter form here on.
