The capital markets regulator has given the conditional approval for the initial public offer of RBL Bank (formerly Ratnakar Bank), and a final go-ahead is expected soon. RBL Bank is planning to raise Rs.1,100 crore through its IPO.
RBL, which had filed its draft prospectus with the regulator Securities and Exchange Board of India (Sebi) on 23 June 2015, has been waiting for the Sebi’s approval for almost 10 months now. The regulator had withheld approval as RBL had in the past issued securities to more subscribers than stipulated under The Companies Act, 2013.
For buying and selling physical/demat unlisted/delisted shares of RBL Bank and all companies, please contact call on 08108234400 or email on email@example.com
In December, Sebi announced that any offer or allotment of securities shall be considered as public issue if the number of allottees exceeds 200 persons in a fiscal year under the Companies Act, 2013, as against the cap of 49 persons provided in The Companies Act, 1956.
Sebi’s conditional approval requires RBL to take a corrective action to resolve the past violation. The company has already send letters to provide an exit opportunity to investors who had subscribed to shares in these past rounds.
On 21 December 2015, RBL Bank raised Rs 488 crore through a pre-IPO round of fundraising. The private lender raised the funds from international investors, including the Asian Development Bank (ADB) and the UK government’s development finance arm CDC Group Plc, among others. Over the last three years, global and local private equity and development funds have invested more than Rs 1400 crore in the bank in three tranches. Housing Development Finance Corp. Ltd (HDFC), Norwest Venture Partners, Samara Capital, Beacon Capital, Faering Capital, TVS Shriram, Cartica Capital, Ascent Capital, Aditya Birla Private Equity, IDFC’s Spice Fund and ICICI’s Emerging India Fund are among its shareholders.
In 2014-15, the bank reported revenue of Rs 2,356.4 crore, compared with Rs 1,612.5 crore in the previous year. It reported a profit of Rs 208.4 crore as against a profit of Rs 92.8 crore a year ago.
Though RBL Bank is an old private sector bank established in 1943, it has accelerated its growth under a new management, led by managing director and chief executive officer Vishwavir Ahuja since 2010. In the last three years, the bank has shed its regional image, opened branches and attracted new investors.