RBL Bank initial public offering (IPO) got subscribed over 69 times after the public issue closed on Tuesday, according to stock exchange data. The response represented a quantum jump on the last day as the public issue of the private sector lender had seen oversubscription by just 3.08 times at the end of Monday (Day 2), according to National Stock Exchange (NSE) data.
By the end of Tuesday (last day), the RBL Bank IPO had garnered bids for 263.52 crore equity shares; the bank had offered 3.79 crore shares (excluding anchor investors' portion), according to stock exchange data.
The price band for the shares being offered is Rs. 224-225 per equity share of face value of Rs. 10 each. The issue comprises 16.90 million shares being offloaded by existing investors (offer for sale, or OFS) and fresh issue of 37.16 million shares.
Earlier, the bank raised Rs. 364 crore from anchor investors by issuing shares to 28 anchor investors at the upper price band of Rs 225.
The bank's track record on the loan front is considered sound because of its client profile. "Market experts are of opinion that the bank has stayed away from stressed sectors such as steel, power as well as infrastructure, which has helped it to maintain its asset quality at better levels compared to its peers," Dynamic Levels had said in its IPO note.
Kolhapur-based RBL Bank had raised Rs. 488 crore in pre-IPO preferential placement of shares last December at Rs. 195 per share.
RBL Bank was incorporated in 1943 as Ratnakar Bank.
Profile of the bank:
RBL Bank had 197 interconnected branches and 362 interconnected ATMs spread across 16 Indian states and union territories as of March 31, 2016.
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.