RBL Bank made a strong debut on the bourses on Wednesday. The stock ended the session at `299.95 apiece, up around 33% over the issue price of Rs 225 after listing at `274.20. Post listing, the stock commands a market capitalisation of `11,068.38 crore.
The initial public offering (IPO) of RBL Bank was subscribed 69.53 times with investors bidding for 263.5 crore shares of the total 3.79 crore shares on offer. The `1,212.97 crore IPO comprised of a fresh issue equity shares aggregating Rs 832.50 crore and an offer for sale (OFS) of over 1.69 crore shares by Beacon India private equity fund, GPE India and other shareholders.
Qualified institutional buyers (QIBs) bid 85.08 times of their quota or 92.43 crore shares of the 1.08 crore shares reserved for them. High net-worth (HNIs) individuals bid for 160.6 crore shares of the 81 lakh shares reserved for them, 198 times the quota. Retail investors bid for nearly 5.53 times of their quota or 10.45 crore shares of the 1.89 crore shares reserved for them.
On August 18, the bank raised `363.89 crore by allotting 1.61 crore shares to 25 anchor investors at a price of `225 apiece. Among the investors who were allotted shares in the pre IPO placement include Goldman Sachs India Fund, HSBC Global Investment Funds, Reliance Capital Trustee, HDFC Trustee Company, SBI Mutual Fund and Birla Sun Life Trustee Company among others.
In a pre-IPO placement held on December 16, 2015, RBL Bank allotted 2.5 crore shares at a price of `195 per share to investors, amounting to `487.5 crore. CDC Group, Asian Development Bank, DVI Fund (Mauritius) were among these investors.
For the year to March 2016, RBL’s total income grew by 37% year-on-year and net profit was up by 41.19%. RBL ended FY16 with advances of `21,229 crore, up 46% and deposits of `24,348.6 crore, up 42.4%. The bank’s provisions grew by 90% during the same period. As of March 2016, gross non performing assets (NPAs) of the bank were 0.98 of its total advances.