RBL offering subscribed 70 times

The Rs 1,200-crore initial public offering (IPO) of RBL Bank — the first by a private sector lender in a decade — was subscribed around 70 times. The IPO generated demand worth over Rs 59,000 crore, among the highest in recent times, as it attracted bids from all three categories of investors.

The institutional investor segment was subscribed 85 times, while the high networth individual (HNI) segment saw around 198 times demand. The retail quota was subscribed 5.4 times and saw around a million applications.

Market players said investors were attracted to RBL Bank’s track record and growth opportunities in the small and medium enterprises lending and retail space, where it operates.

“The banking sector is facing growth pangs. Despite that, RBL Bank has been able demonstrate growth without compromising on asset quality. Investors have also shown faith in the bank’s management and their execution track record,” said Subhrajit Roy, executive director, Kotak Investment Bank, one of the bankers to the issue.

RBL Bank will get around Rs 830 crore from the IPO, which it will use to augment its tier-I capital to help fuel future growth.

Existing investors, including private equity firms Beacon India, Gaja Capital and Capvent, successfully offloaded shares worth Rs 382 crore in the IPO.

At the top-end of the price band of Rs 225, RBL Bank has a post-issue market capitalisation of Rs 8,140 crore.

The IPO was handled by Kotak Investment Bank, Axis Capital, Citigroup and Morgan Stanley.

 

	The Rs 1,200-crore RBL IPO generated demand worth around Rs 59,000 crore
	Shares reserved (in mn)	Bids received (in mn)	No. of times susbcribed
Institutional	10.9	924.4	85.1
HNI	8.1	1,606.5	198.1
Retail	18.9	102.5	5.4
Overall	37.9	2,633.5	69.5
Source: NSE, BSE; Note: Provisional data