RBL Bank IPO receives overwhelming response; subscribed 69.50 times

By: |
New Delhi | Updated: August 23, 2016 5:26:43 PM

RBL Bank IPO received an overwhelming response from investors as it was oversubscribed by 69.50 times on the last day of offer till 5 pm.

RBL Bank IPORBL Bank IPO received an overwhelming response from investors as it was oversubscribed by 69.50 times on the last day of offer till 5 pm.

RBL Bank IPO received an overwhelming response from investors as it was oversubscribed by 69.50 times on the last day of offer till 5 pm. The initial public offer received bids for 2,63,40,58,310 shares against 3,79,01,919 shares offered by the private sector lender. RBL Bank has fixed a price band of Rs 224-255 for the initial public offer. The issue was opened for subscription on August 19.

The bank has plans to raise around Rs 1213 crore at the upper price band of Rs 225. The IPO comprises 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.

On August 18, RBL Bank garnered around Rs 363.89 crore from 25 anchor invetors by allotting 1.61 crore shares at a price of Rs 225 apiece. In a pre-IPO placement which was held in December last year, the bank allotted 2.50 crore shares at a price of Rs 195 per share to investors, amounting to Rs 487.5 crore. Asian Development Bank, DVI Fund (Mauritius) and CDC Group were among these investors.

Brokerage houses such as ICICI Bank, Angel Broking, Hem Securities and Ajcon Global were bullish on the IPO of the RBL Bank. The bank was formed as a small, regional bank in Maharashtra in 1943 with two branches in Kolhapur and Sangli. The bank offers a range of banking products and services customised to cater to the needs of SMEs, large companies, agricultural and retail customers and development banking and financial inclusion (low income) customers. The bank was formerly known as Ratnakar Bank.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.