Kolhapur-based RBL Bank (Ratnakar Bank) is launching Rs 1,230 crore initial public offer (IPO). The price band has been fixed at Rs 224-225 per share. The IPO will open on 19 August 2016 and close on 23 August 2016. The share sale, accounting for 10-11% stake, will give the bank a valuation of over Rs 12,000 crore.
The IPO is likely to see huge demand from investors and will be heavily oversubscribed and hence, investors will not get desired quantity. For buying and selling shares of RBL Bank and physical/demat unlisted/delisted shares of all other companies, please contact call on 08108234400 or email on firstname.lastname@example.org
RBL Bank IPO is the first IPO by a private sector lender in a decade. The last private sector bank to launch an IPO was Yes Bank.
RBL has 197 branches and 362 ATMs across 16 states. Its shares are valued at 2.2 times price-to-book (P/B) on historical value.
In the third quarter of fiscal 2016, the bank raised Rs 487.5 crore in a pre-IPO allotment to institutional investors, selling 25 million shares at Rs 195 each. Institutions participating in the offering included CDC Group PLC, DVI Fund (Mauritius) Ltd, Rimco (Mauritius) Ltd and Asian Development Bank. Over the past three years, global and local private equity and development funds have invested more than Rs.1,400 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.
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. In 2015-16, RBL Bank reported a revenue of Rs 3,234.85 crore, up from Rs 2,356.49 crore a year ago and a profit of Rs 296.8 crore, up from Rs 208.45 crore a year ago.