GIC-backed Indian lender makes market debut at 33% premium

KOLKATA-based private lender Bandhan Bank, which counts Singapore sovereign wealth fund GIC as an investor, made a market debut at a 33 per cent premium to the issue price of 375 rupees, India's The Economic Times reported on Tuesday.

As at 2.15pm, it was trading at 472.25 rupees, up 26 per cent, with 59.4 million shares changing hands.

Choo Yong Cheen, chief investment officer of private equity at GIC, told The Business Times: "GIC is privileged to be part of Bandhan's transformative journey from a microfinance institution to being amongst India's most respected banks, and now a listed company.

"We look forward to continuing our strong partnership with Bandhan's management team as they pursue the vision to be an inclusive, world-class bank. As a long-term investor, we remain confident in Bandhan's ability to tap the strong growth potential of India's financial services sector."

Bandhan Bank is a commercial bank focused on serving under-banked and under-penetrated markets in India.

GIC affiliate Caladium has a 16.7 per cent stake in it, making it the second-largest shareholder in the bank after Financial Inclusion Trust (32.91 per cent), according to the company's initial public offering prospectus lodged on March 20, 2018.