RBL Bank is all Set for its IPO

RBL Bank, earlier known as Ratnakar Bank is all set for its IPO from 19th August- 23rd August, 2016. The bank aims to raise Rs 1213 crore with this IPO through mix of fresh issue as well as offer for sale by shareholders with face value of Rs 10. The price band of the issue will be between Rs 224-225. The Kolhapur-based lender has made a pre-IPO placement of 2.5 crore equity shares to few investors at a price of Rs 195 per share, and has raised Rs 488 crore.

 

Aim of the IPO

The Scheduled Commercial Bank, RBL’s aim is to raise funds for Tier-I equity capital base, and to also fulfill the incremental capital needs under the Basel-III norms as well as RBI’s norms, through this IPO. The Bank will issue 3.7 crores equity shares through fresh issue to raise around Rs 832.5 crores. The bank is also aiming to raise Rs 378.5 crore through offer for sale (OFS) by sale of 1.69 crore shares by existing shareholders.

Industry Outlook of the Banking Sector

The Indian banking system is currently in a restructuring phase. The financial as well as the economic conditions of the country are not just stable but quite better than other countries in the world. The Indian banking industry is on a path of modernisation with new trends like payment and small finance banks.

Schemes like Pradhan Mantri Jan Dhan Yojana, government’s initiatives on financial inclusion and rising disposable income will be positive for garnering deposits.

RBL Bank at a Glance

The Kolhapur based bank was commenced its work in the year 1943. Till 2010, RBL remained a regional bank with focus on Maharashtra region only; but after new management came into force, they made quantum jump in growth. Bank currently has 197 branches and 362 ATMs with presence across metro, urban and rural areas.

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