RBL Bank public issue gets 70 times subscription

Our Bureaus Mumbai/Chennai | Updated on January 17, 2018 Published on August 23, 2016

The initial public offering of RBL Bank has received tremendous response from all category investors. In all, the issue was subscribed by 69.6 times, with the number of applications crossing 10-lakh mark on the last day of the IPO on Tuesday.

The IPO is a combination of fresh issue of shares worth ₹832 crore and an offer-for-sale for 1.69 crore equity shares worth ₹380.46 crore. Existing investors including Beacon India Private Equity and GPE will sell shares through the IPO.

The price band for the IPO is fixed at ₹224-225 a share.

The IPO has received bids for 263.84 crore shares as against the total issue size of 3.79 crore shares, according to the data available with the NSE till 830 p.m. IST.

The quota reserved for qualified institutional buyers was subscribed by about 28 times, while non- institutional investors portion received bids for 115 times. Retail investors portion got subscription for nearly seven times for RBL Bank, earlier known as Ratnakar Bank.

To boost Tier 1 capital

The IPO proceeds will be used to boost the bank’s Tier 1 capital to fund its growth.

Ahead of the IPO, RBL Bank had raised ₹364 crore from anchor investors by allotting over 1.61 crore shares at ₹225 apiece.

Among them include Merrill Lynch Capital Markets Singapore Pte, FIL Investments Mauritius, Government Pension Fund Global, Goldman Sachs India Fund, GMO Emerging Domestic Opportunities Fund, Auburn, HSBC Global Investment Funds, Reliance Capital Trustee Company, HDFC Trustee Company, SBI Mutual Fund and Nomura Funds Ireland Plc.

YES Bank was the last private bank to raise funds through capital markets in 2005.

Of late, some of the public issues have been receiving a strong response by investors. Quess Corp’ IPO was oversubscribed by a staggering 145 times, while that of Advanced Enzyme Technologies offer got subscribed 116 times.

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Published on August 23, 2016
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