The Kolkata-based private sector lender Bandhan Bank surpassed the market capitalisation of all listed PSU banks except State Bank of India upon blockbuster stock market debut on Tuesday after floating India’s biggest bank IPO earlier this month. Bandhan Bank shares jumped as high as 33% to open at Rs 499 on Tuesday against the IPO price of Rs 375 on NSE. Amid the subdued market conditions, Bandhan Bank IPO was subscribed 14.58 times with institutional investors bidding 38 times against the portion reserved for them. With an IPO (initial public offering) size of Rs 4,473 crore, Bandhan Bank IPO was touted as the biggest initial share sale by a bank ever in India.
Bandhan Bank’s market capitalisation has crossed the market capitalisation of all listed PSU (public sector undertaking) banks barring State Bank of India upon a stellar stock market debut. India’s largest bank by assets State Bank of India is the second-biggest bank in terms of market capitalisation, the only PSU bank ahead of Bandhan Bank in terms of the market capitalisation. Bandhan Bank is now India’s eighth-largest bank by market capitalisation striking a market capitalisation of Rs 58,814.84 crore at the day’s high price of Rs 494.8 on BSE on listing.
Interestingly, Bandhan Bank has breached the market capitalisation of India’s second-largest PSU bank Punjab National Bank and other prominent state-run bankers such as Canara Bank, Bank of Baroda, IDBI Bank and Union Bank of India on the listing day itself. Bandhan Bank now features on the eighth spot in terms of market capitalisation behind seven private sector lenders (HDFC Bank, Kotak Mahindra Bank, ICICI Bank, Axis Bank, IndusInd Bank, Yes Bank) and one state-owned bank State Bank of India.
HDFC Bank and State Bank of India firmly commands the first and the second place in terms of market capitalisation in India and are far ahead than Bandhan Bank. HDFC Bank and State Bank of India held a market capitalisation Rs 4,91,289.51 crore and Rs 2,12,650.65 crore respectively while the second largest PSU lender Punjab National Bank has a market capitalisation of Rs 23,236.98 crore.
On the first day of dealing in the shares of Bandhan Bank, a massive trading volume has been witnessed in the shares, as at 12:05 pm, more than 7.1 crore shares exchanged hands on both NSE and BSE with about 6.1 crore shares on NSE alone.
In India’s biggest banking IPO, Bandhan Bank had appointed five merchant bankers, namely, Goldman Sachs (India) Securities Pvt Ltd, Kotak Mahindra Capital Company Ltd, Axis Capital Ltd, JM Financial Institutional Securities and JP Morgan India Private Ltd.
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