The initial public offering (IPO) of RBL Bank was subscribed 69.53 times on Tuesday, the third and final day of the issue.
Till 5 pm on Tuesday, bids had been received for 263.5 crore shares of the total 3.79 crore shares on offer.
RBL Bank aims to raise R1,212.97 crore (when calculated at the upper end of the price band) through the issue, and shares have been prices in the band of
R224-R225 apiece. The IPO comprises fresh issue equity shares aggregating R832.50 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 R363.89 crore by allotting 1.61 crore shares to 25 anchor investors at a price of R225 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 R195 per share to investors, amounting to R487.5 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 R21,229 crore, up 46% and deposits of R24,348.6 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.
The global co-ordinators and book running lead managers to the issue are Axis Capital, Kotak Mahindra Capital, Citigroup Global and Morgan Stanley. The book running lead managers to the issue are HDFC Bank, ICICI Securities, IDFC Securities, IIFL Holdings and SBI Capital Markets.