In what comes as quite a surprise to the markets, Bandhan Bank, the Kolkata-based private lending institution, recently exceeded the market capitalisation of all listed Public Sector Undertakings, barring the State Bank of India.
After floating perhaps the biggest bank IPO earlier during the month, a very interesting point is that the company surpassed the market capitalisation of some of India’s established PSU biggies including Punjab National Bank, Union Bank of India and Bank of Baroda, on the very first day of its IPO listing.
The Kolkata-based lending institution started off as a microfinance company and was issued a banking license by the Reserve bank of India in 2014, before making a startling stock-market debut earlier during the month.
Shares of Bandhan bank opened at Rs. 499/share, an almost 33% jump from the initial IPO price of Rs. 375/share on the National Stock Exchange. The size of the IPO stood at Rs. 4,473 crore, sending waves of surprise across all sections of the market. Bandhan Bank’s market capitalisation now stands at Rs. 58,814 crore against a share price of Rs.494.8 on BSE, at the end of the day’s trading.
HDFC Bank and State Bank of India hold the first and second positions in market capitalisation among Indian banks, and don’t look like being dislodged from their positions in the near future.