BASIS FOR ISSUE PRICE

The Issue Price was determined by our Bank and the Selling Shareholders, in consultation with the Book Running Lead
Managers, on the basis of assessment of market demand for the Equity Shares offered through the Book Building Process
and on the basis of quantitative and qualitative factors as described below. The face value of the Equity Shares is 710
each and the Issue Price is 30.50 times the face value. Investors should also see “Our Business”, “Risk Factors”,
“Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Financial Information”
beginning on pages 141, 22 and 306, respectively, to have an informed view before making an investment decision.

Qualitative Factors

We believe the following business strengths allow us to successfully compete in the industry:

Customer centric approach with a focus on financial inclusion;

Diversified asset portfolio with a focus on retail operations;

Fast evolving granular deposit franchise;

Leveraging emerging technologies to enhance digital footprint;

Strong credit processes and robust risk management framework;

Track record of strong financial performance and cost efficient operations;

Multiple distribution channels; and

Experienced leadership team, professional management and strong corporate governance.

For details, see “Our Business — Strengths” beginning on page 143.

Quantitative Factors

Some of the information presented below relating to our Bank is derived from the Restated Financial Statements. For
details, see “Financial Information” beginning on page 241.

Some of the quantitative factors which may form the basis for computing the Issue Price are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

A. Basic and Diluted Earnings Per Share (“EPS”):
Fiscal Year ended Basic EPS (in) | Diluted EPS (in Weight
2%
March 31, 2018 1.76 1.76 1
March 31, 2019 13.35, 13.16 2
March 31, 2020 13.41 13.30 3
Weighted Average 11.45 11.33
December 31, 2020* 6.19 6.05
December 31, 2019 * 15.49 15.43
* Not annualised
(i) Basic earnings per share = Net profit, as restated, attributable to equity shareholders

 

 

Weighted average number of basic equity shares outstanding during the period/year
Diluted earnings per share
=| Net profit, as restated, attributable to equity shareholders

 

Weighted average number of diluted equity shares outstanding during the period/year

(i) Earnings per share calculations are done in accordance with Accounting Standard 20 “Earnings Per Share” (“AS 20") as notified
under Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014

(iii) The Weighted Average basic and diluted EPS is a product of basic and diluted EPS and respective assigned weight, dividing the
resultant by total aggregate weight

 

 

 

B. Price/Earning (“P/E”) ratio in relation to Issue Price of = 305 per Equity Share:
Particulars P/E at the Issue Price (no.
of times)
Based on Basic EPS for Fiscal 2020 22.74
Based on Diluted EPS for Fiscal 2020 22.93

 

 

Industry Peer Group P/E ratio

 

Particulars Industry P/E

 

 

 

Highest 48.34

 

 

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