RBL Bank IPO subscribed 69.62 times

Receives bids for 263.87 crore shares

The initial public offer (IPO) of private sector bank RBL Bank, erstwhile Ratnakar Bank, ended with overwhelming response on 23 August 2016. The IPO received bids for 263.87 crore shares, as per the data on the National Stock Exchange of India (NSE) website. The IPO was subscribed 69.62 times.

The qualified institutional buyers (QIBs) category was subscribed 85.08 times. The non-institutional investors category was subscribed 198.06 times. The retail individual investors (RIIs) category was subscribed 5.70 times.

Ahead of the opening of IPO, RBL Bank raised Rs 363.89 crore by selling 1.61 crore shares to 25 anchor investors. The shares were allotted to the anchor investors at Rs 225 per share, the top end of the Rs 224 to Rs 225 per share price band for the IPO.

The IPO of RBL Bank comprised of fresh issue of equity shares aggregating Rs 832.50 crore and offer for sale of 1.69 crore equity shares. The offer for sale included sale of up to 95.05 lakh equity shares by Beacon India Private Equity Fund, up to 35.25 lakh equity shares by GPE (India) and up to 38.79 lakh equity shares by others.

The bank proposes to utilize the proceeds of the fresh issue to augment Tier-I capital base to meet its future capital requirements which are expected to arise out of growth in the bank's assets, primarily the bank's loans/advances and investment portfolio, and to ensure compliance with Basel III and other RBI guidelines. The bank also believes that the listing of equity shares will enhance the bank's visibility and brand name among existing and potential customers.

RBL Bank is professionally managed and has no identifiable promoter. As on 31 March 2016, the bank had 197 interconnected branches and 362 interconnected ATMs spread across 16 Indian states and union territories serving approximately 1.90 million customers.

RBL Bank's net profit rose 41.17% to Rs 292.49 crore on 36.46% growth in net total income to Rs 1309.75 crore in the year ended 31 March 2016 (FY 2016) over the year ended 31 March 2015 (FY 2015). The bank has maintained asset quality amidst challenging macro environment. Gross NPA stood at 0.98% and net NPA stood at 0.59% at end March 2016. Standard restructured assets as a percentage of net advances stood at 0.09% as of end March 2016.

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