Mumbai based RBL earlier known as Ratnakar Bank is a popular private sector bank opening its IPO on August 19, 2016. After the IPO, shares of RBL will be listed on NSE and BSE on 31 August.
As of March 2016, RBL Bank has grown to a network of 201 branches and 365 ATMs across 16 Indian states and Union Territories.
It is the first bank IPO in India after 5-10 years. The last IPO was state-run Punjab & Sind Bank which was listed in 2010. In private sector banks, the last IPO was of Yes Bank which was listed in July 2005.
Here are 7 important things to know about the RBL Bank IPO:
1) IPO Range
As per reports, the bank IPO will be priced in the range of Rs 224-225 per share and applications to be made in multiples of 65 shares. Here are a few more details.
2) Shareholders of Bank
CDC Group, Asian Development Bank (ADB), World Bank arm International Finance Corporation (IFC), Norwest Venture Partners (NVP), Faering Capital India are among the biggest investors in the bank.
3) Company Growth
In the last four years, total income has grown substantially from Rs 5,322.16 million in fiscal 2012 to Rs 32,348.50 million in Fiscal 2016, which represents a compound annual growth rate (CAGR) of 57.02%.
The bank was established in 1943. RBL Bank undertook a transformational journey under a new management team in 2010. It embarked on an aggressive growth plan based on a robust platform. The bank was renamed in December 2013 to RBL Bank.
5) Capital Adequacy Ratio (CAR)
RBL Bank has adopted Basel III starting from April 1, 2013, in line with the regulations prescribed by the RBI. The bank's capital adequacy ratio under Basel III as of March 31, 2014, 2015 and 2016 was 14.64%, 13.13% and 12.94%, respectively.
6) Business Segments
RBL Bank offers specialized services under five business verticals namely: Corporate & Institutional Banking, Commercial Banking, Retail Banking, Agri & Development Banking and Financial Markets. The Bank currently serves more than 14,00,000 customers and has a total business size of over Rs 31,000 Crores.
7) Book running lead managers
The IPO will be managed by Kotak Mahindra Capital, Axis Capital, Citigroup, Morgan Stanley, HDFC Bank, ICICI Securities, IDFC Securities, IIFL Holdings and SBI Capital Markets.