| Log in
Photo Credit: Shah Junaid/VCCircle

RBL Bank’s $182 mn IPO fully covered

22 August, 2016

The initial public offering of RBL Bank Ltd, the first private-sector bank to go public in a decade, was subscribed three times the shares on offer on the second day of the issue on Monday.

The issue of 37.9 million shares had received bids for 116.86 million shares by the end of the day, stock-exchange data show. The issue closes on Tuesday.

Retail investors bid for 3.26 times the number of shares set aside for them while institutional buyers’ quota was covered 4.28 times. The portion reserved for non-institutional investors, including corporate houses, was subscribed 1.08 times.

The IPO had crossed the two-thirds mark on the first day of the offering on Friday, with retail investors and institutional buyers leading the subscription.

Earlier, RBL Bank had raised Rs 364 crore ($54 million) by selling shares to anchor investors including private equity firm ChrysCap and Wipro chairman Azim Premji’s private investment arm, PremjiInvest. 

The lender, earlier known as Ratnakar Bank Ltd, has fixed Rs 224-225 a share as the price band for the IPO. This will translate into an issue worth Rs 1,213 crore ($182 million) at the upper end of the price band and value the lender around $1.25 billion.

RBL Bank is the first private-sector bank to float an IPO in a decade. The last private-sector bank to float an IPO was YES Bank in 2005. In 2010, state-run Punjab & Sind Bank went public.

RBL Bank had earlier cut the size of the IPO after it raised capital from a bunch of investors in a pre-IPO placement late last year and as its selling shareholders trimmed the offer for sale. The lender cut the size of both the fresh issue and the number of shares on offer for sale.

Originally, it had sought to raise up to Rs 1,100 crore ($162 million then) through a fresh issue of shares and an offer for sale of 17.56 million shares by some shareholders.

It is now looking to raise Rs 832.5 crore ($125 million) through the fresh issue and an offer for sale of up to 16.9 million shares.

One of its private equity investors, Beacon India Private Equity Fund, is selling all its shares. Gaja Capital and Capvent will part-exit in the IPO. 

RBL Bank had received approval from the Securities and Exchange Board of India (SEBI) on 27 July, nearly a year after it applied.

The issue got delayed as the capital markets regulator had asked the bank to resolve the issue of past violations of the Companies Act, wherein it had issued securities to a higher number of subscribers than permitted. SEBI agreed to settle the case in June.

Like this report? Sign up for our daily newsletter to get our top reports.


Leave Your Comment
RBL Bank's IPO covered almost 70 times

RBL Bank’s IPO covered almost 70 times

TEAM VCC 1 year ago
The initial public offering of RBL Bank Ltd was subscribed almost 70 times on...
ChrysCap, PremjiInvest among anchor investors in RBL Bank

ChrysCap, PremjiInvest among anchor investors in RBL Bank

Bruhadeeswaran R 1 year ago
RBL Bank Ltd has raised Rs 364 crore ($54 million) by selling shares to anchor...
RBL Bank extends gains to 33% on listing day; TVS Capital part-exits

RBL Bank extends gains to 33% on listing day; TVS Capital part-exits

TEAM VCC 1 year ago
RBL Bank Ltd made a strong stock market debut on Wednesday with its shares...
No Comments

RBL Bank’s $182 mn IPO fully covered

Powered by WordPress.com VIP