RBL Bank's IPO oversubscribed 3 times on day 2; receives bids of 11.68 cr shares vs 3.79 cr shares on offer
The IPO received bids for 11,68,63,630 shares against the total issue size of 3,79,01,919 shares
New Delhi: The initial public offering of private lender RBL Bank pulled off an oversubscription of 3.08 times on the second day of the 3-day issue Monday.
This is the first initial share sale by any private bank in a decade.
The IPO received bids for 11,68,63,630 shares against the total issue size of 3,79,01,919 shares, data available with NSE till 1700 hours showed.
The quota reserved for qualified institutional buyers (QIBs) was oversubscribed 4.28 times while the non-institutional investors portion was fully subscribed 1.08 times.
The chunk set aside for retail investors saw oversubscription of 3.26 times the issue size, as per the NSE data.
The company, last week, raised Rs 364 crore by allotting over 1.61 crore shares to anchor investors at Rs 225 apiece.
Price band for the IPO is fixed at Rs 224-225 per share. The offer will close tomorrow. Under the initial public offer, RBL Bank would raise Rs 832.50 crore through fresh shares issue and up to Rs 380.46 crore from an offer for sale by existing shareholders.
The share sale, accounting for 10-11 per cent stake, would give the bank a valuation of over Rs 12,000 crore. Yes Bank was the last private lender to hit the capital markets in 2005.
Taking into account state-run banks as well, Punjab and Sind Bank last went public six years ago in 2010. The existing investors, including Beacon India Private Equity and GPE, will sell shares through the IPO.
The Kolhapur-headquartered RBL Bank had made a pre-IPO placement of 2.5 crore shares at Rs 195 per share last year to CDC Group, DVI Fund, Rimco and Asian Development Bank.
With RBI announcing on-tap licences for full-fledged banks, the number of lenders hitting the markets is bound to increase as the regulations call for mandatory listing within a defined timeframe.
Kotak Mahindra Capital, Axis Capital, Citigroup, Morgan Stanley are global merchant bankers for the deal while HDFC Bank, ICICI Securities, IDFC Securities, IIFL and SBI Caps are the lead managers for the local market.
Weak global trends and persistent foreign fund outflows coupled with rising crude prices led to domestic markets snapping their three-day positive streak. However, they bounced back on the back of gains in oil & gas, metal, and auto sectors.
Markets ended higher for the third consecutive session led by a rally in IT stocks and positive global sentiment
Among the sectoral indices, IT was the only laggard. Media was the biggest gainer. Oil & gas, banking, financial services, consumer durables, auto, metal and FMCG rose between 1 and 2 percent. BSE Midcap and Smallcap indices gained over 1.5 percent.