RBL Bank IPO, which hit capital markets on August 19, oversubscribed by 3.08 times on the second day of offer till 5 pm. The issue received bids for 11,68,63,630 shares against 3,79,01,919 shares offered by the bank. This is the first public offer by a private sector lender in a decade after YES Bank. The issue will close on August 23
RBL Bank has raised Rs 364 crore from anchor investors at an upper price band of Rs 225. The list of anchor investors include Goldman Sachs India Fund, Government Pension Fund Global, FIL Investments Mauritius, Auburn Ltd and HSBC Global Investment Funds — Indian Equity. RBL Bank has fixed price band of Rs 224-255 for the initial public offer. Under the IPO, the bank has plans to raise Rs 832.50 crore through fresh shares issue and up to Rs 380.46 crore from an offer for sale by existing shareholders.
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Axis Bank, Citigroup, Morgan Stanley and Kotak Mahindra Capital are global merchant banker for the public offer, while ICICI Securites, IDFC Securities, IIFL, SBI Cap and HDFC Bank are the lead managers for domestic markets.
Brokerage firms such as Angel Broking, Reliance Securities, Hem Securities, ICICI Direct and Ajcon Global have give ‘Subscribe’ rating to the IPO of RBL Bank.
The bank has posted a robust compounded annual growth rate (CAGR) in its financials from FY12 to FY16. RBL Bank posted around 46 per cent CAGR in its bottomline from 2011-12 to 2015-16 while bank’s advances has grown at CAGR of 51 per cent during the same year which are among one of the best in industry. Hem Securities is bullish on the IPO due to the robust financial growth of RBL Bank, superior asset quality and strong potential for future growth.
