The initial public offering of private sector lender RBL Bank was fully subscribed till noon on the second day of the issue today.
This is the first initial share sale by any private sector lender in a decade.
The public issue received bids for 5.41 crore shares as against 3.79 crore on offer, generating a subscription of 1.43 times, as per the information available with the stock exchanges till 1230 hours.
The company, last week, raised Rs.364 crore by allotting over 1.61 crore shares to anchor investors at Rs.225 apiece.
The anchor investors include FIL Investments Mauritius Ltd, Government Pension Fund Global, Goldman Sachs India Fund, Auburn Ltd and HSBC Global Investment Funds – Indian Equity.
Price band for the IPO is Rs.224-225 per share. The offers would 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 sector 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.
Existing investors, including Beacon India Private Equity and GPE, would sell shares through the IPO.
The Kolhapur-headquartered RBL Bank had made a pre-IPO placement of 2.5 crore equity shares at Rs.195 per share last year to CDC Group, DVI Fund, Rimco and Asian Development Bank.
With the RBI announcing on-tap licences for full-fledged banks, the number of banks hitting the markets is bound to increase as the regulations call for mandatory listing within a defined time-frame.
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.