New Delhi: RBL Bank's initial public offer, the first by a private bank in a decade, was oversubscribed a staggering 69.58 times, with the number of applications crossing 1 million on the last day of the IPO on August 23.
It received bids for 2,63,73,00,965 shares as against the total issue size of 3,79,01,919 shares, according to the data available with the NSE till 1900 hrs. The quota reserved for qualified institutional buyers (QIBs) was oversubscribed 85 times, while non institutional investors portion was subscribed 198 times, sources said.
The chunk set aside for retail investors saw an oversubscription of 5.58 times. The offer has collected around Rs 60,000 crore. It has attracted over 1.02 million applications. RBL 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.
RBL Bank will 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, will 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.
Earlier, staffing firm Quess Corp' IPO was oversubscribed by a staggering 145 times, while that of Advanced Enzyme Technologies offer got subscribed 116 times, diagnostics firm Thyrocare Technologies was oversubscribed 73.46 times and TeamLease Services' offer 66 times.
