Shares of Bandhan Bank Ltd listed at 30% premium on the bourses on Tuesday after its Rs4,470 crore initial public offer (IPO), the largest ever by a bank, was subscribed 14.63 times last week.
Bandhan Bank shares opened 29.33% higher on the BSE at Rs485 apiece, compared to the issue price of Rs375, which was the upper end of the price band of Rs370-375 per share.
At 10am, the stock was up 25.33% at Rs470, while benchmark 30-share Sensex traded 0.44% higher at Rs33,212.16. Earlier in the day, the shares touched a high of Rs494.80 and a low of Rs455.
While brokerages had recommended investors to apply for the private lender’s IPO from a long-term perspective, on the back of healthy financials and high return ratios, they had ruled out decent listing gains.
Last week, state-run Bharat Dynamics Ltd fell 8.7% on its listing day in a weak market.
Late on Monday, ICICI Securities Ltd, the brokerage and investment banking arm of ICICI Bank Ltd, cut the size of its IPO to around Rs3,520 crore after the IPO witnessed low subscription, especially in the portion of the shares reserved for high networth individuals.
Also Read:
India: Bandhan Bank’s $690m IPO subscribed 15 times on strong debut
India: ICICI Securities cut IPO size to nearly $542m owing to weak subscription
