RBL Bank (formerly Ratnakar Bank Limited) is all set to hit the primary market with its initial public offering (IPO) of equity shares soon, after the capital markets regulator late last month cleared the private lender's public issue.
The bank had filed the draft prospectus with the regulator on June 23, 2015.
Kolhapur-based RBL Bank had raised Rs. 488 crore in pre-IPO preferential placement of shares last December. The exercise was in accordance with its IPO document filed with the Securities and Exchange Board of India (Sebi) in June 2015. The shares were placed with international investors, including the Asian Development Bank (ADB) and CDC Group Plc. The shares were issued at Rs. 195 apiece.
"This capital raise was undertaken to augment the tier 1 capital base of the Bank," Vishwavir Ahuja, MD & CEO, RBL Bank, had said in a statement on Dec. 20, 2015.
Here are some facts about RBL Bank, according to information available on its website and the draft prospectus filed with Sebi:
The IPO size will be about Rs. 1,100 crore comprising fresh issue of shares, in addition to offer of sale of 17.56 million equity shares by existing investors.
The face value of the share is Rs.10 each.
The price band will be decided in consultation with global coordinators and book running lead managers (GCBRLMs) to the issue.
The shares will be listed on BSE and NSE.
The bank earned a net profit of Rs. 292.48 crore on revenues of Rs. 3,234.85 crore for the financial year 2015-16, up from Rs. 208.45 crore and Rs. 2,356.5 crore in the preceding financial year.
The diluted EPS was Rs.9.43 for 2015-16 as against Rs. 7 in 2014-15 (Diluted earnings per share reflect the potential dilution that could occur if contracts to issue equity shares were exercised or converted during the period).
Deposits and advances stood at Rs. 24,348 crore and Rs. 21,229 crore, respectively, as of March 31, 2016.
Net non-performing assets (NPAs) as percentage of total advances rose to 0.59 percent from 0.27 percent at the end of financial year 2014-15.
The GCBRLMs to the issue are Kotak, Axis Capital, Citi and Morgan Stanley. The BRLMs are HDFC Bank, ICICI Securities, IDFC Securities, IIFL Holdings and SBI Capital Markets.
The bank was incorporated in 1943 as Ratnakar Bank.
Over the last five years, global and domestic investors have infused capital of over Rs. 1,500 crore in the bank, taking the TIER 1 capital to Rs. 2,200 crores (approx).
As of March 2016, RBL Bank had 197 branches and 362 ATMs across 13 Indian states.
The corporate office of RBL Bank is at One Indiabulls Centre, Tower 2B, 6th Floor, Lower Parel (W), Mumbai, while the registered office is at Shahupuri, Kolhapur.