The initial public offering of private lender RBL Bank Ltd. was subscribed 3.08 times on the second day of the 3-day issue. This is the first initial share sale by any private bank in a decade. The IPO received bids for 11,68,63,630 shares against the total issue size of 3,79,01,919 shares, data available with the National Stock Exchange till 5:00 pm on Monday showed.
The quota reserved for qualified institutional buyers (QIBs) was subscribed 4.28 times while the non-institutional investors portion was subscribed 1.08 times. The chunk set aside for retail investors saw subscription of 3.26 times the issue size, as per the NSE data.
The company, last week, raised Rs 364 crore by allotting over 1.61 crore shares to anchor investors at Rs 225 apiece. Price band for the IPO is fixed at Rs 224-225 per share. The offer will close tomorrow. Under the initial public offer, RBL Bank would raise Rs 832.50 crore through fresh shares issue and up to Rs 380.46 crore from an offer for sale by existing shareholders.
The share sale, accounting for 10-11 percent stake, would give the bank a valuation of over Rs 12,000 crore. The existing investors, including Beacon India Private Equity and GPE, will sell shares through the IPO. Yes Bank was the last private lender to hit the capital markets in 2005. Taking into account state-run banks as well, Punjab and Sind Bank last went public six years ago in 2010.
The Kolhapur-headquartered RBL Bank had made a pre-IPO placement of 2.5 crore shares at Rs 195 per share last year to CDC Group, DVI Fund, Rimco and Asian Development Bank. With RBI announcing on-tap licences for full-fledged banks, the number of lenders hitting the markets is bound to increase as the regulations call for mandatory listing within a defined timeframe. Kotak Mahindra Capital, Axis Capital, Citigroup, Morgan Stanley are global merchant bankers for the deal while HDFC Bank, ICICI Securities, IDFC Securities, IIFL and SBI Caps are the lead managers for the local market.