RBL Bank lists at 22% premium over issue price of Rs 225

Moneycontrol BureauShares of RBL Bank debuted at the exchanges at Rs 274.20 per share, up 22 percent from its issue price of Rs 225. The first private lender IPO in a decade was open for subscription between August 19-23
Price band was fixed at Rs 224-225 for share sale. The issue included raising up to Rs 832.50 crore through the issue of fresh shares and up to Rs 380.46 crore in an offer for sale by existing shareholders. The share sale, accounting for 10-11 percent stake, will give the bank a valuation of over Rs 12,000 crore.The Rs 1213 crore public issue of RBL Bank, which was earlier known as Ratnakar Bank was oversubscribed 69.62 times on overwhelming response from investors.RBL Bank is one of India’s fastest growing private sector banks in the last six years. Its loan book grew at CAGR of over 60 percent in last 5 years with better diversification and increasing granularity. It has been able to grow its CASA at robust pace of 45 CAGR over FY11‐FY16, while has improved market share from 0.1 percent to 0.5 percent. It has posted a superior CAGR growth of 51 percent from FY2012 to FY2016 in its advances book. Net interest margin has grown to 2.96 percent in FY16 from 2.68 percent in FY14 .

RBL has maintained a capital adequacy ratio of 12.94 percent and 13.13 percent in FY16 and FY15 respectively.

As of March 31, 2016, it has 197 interconnected branches and 362 interconnected ATMs spread across 16 Indian states and union territories serving approximately 1.90 million customers. It acquired certain Indian businesses of Royal Bank of Scotland, including RBS’s business banking, credit card and mortgage portfolio businesses in FY14.Posted by Nasrin Sultana