RBL Bank settles with tad over 33% premium

At Rs 299.30 on BSE

Shares of RBL Bank settled at Rs 299.30 on BSE, a premium of 33.02% over the initial public offer (IPO) price of Rs 225.

The stock debuted at Rs 273.70, a premium of 21.64% to the IPO price. The stock hit a high of Rs 305 and low of Rs 273.70. On BSE, 2.04 crore shares were traded on the counter.

The bank had priced the IPO at the top end of the Rs 224 to Rs 225 per share price band for the IPO. The IPO received overwhelming response from investors. The issue was subscribed 69.62 times.

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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