RBL Bank Limited - IPO Note || Issue Opens on Aug 19,2016

 

                                               IPO Note of "RBL Bank Limited || Issue Details

 

 

 

	RBL Bank Limited
Issue Period	Issue Opens On*:  Friday, August 19, 2016 Issue Closes On  :  Tuesday, August 23, 2016 *The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/ Issue Opening date.
Price Band	Rs. 224 - 225
Bid Lot	65 Equity Shares and multiple thereof
Offer Details	Fresh Issue of Rs.832.50 Crores
	+ Offer for Sale of up to 1,69,09,628 shares (Rs.378.78^ - Rs.380.47~ Cr)
Gross Issue Size ( in Rs.)	Rs.1,211.28^ - Rs.1,212.97~ Crores
Gross Issue size (in Shares)	5,39,09,628~ – 5,40,74,806^ Shares
Issue Structure :
QIB*	50% of the offer ( 2,69,54,813~ - 2,70,37,402^ Shares ) (Rs.605.64^ - Rs.606.48~ Cr)
NIB	15% of the offer (     80,86,445~ -    81,11,221^ Shares ) (Rs.181.69^ - Rs.181.95~ Cr)
Retail	35% of the offer ( 1,88,68,370~ - 1,89,26,183^ Shares ) (Rs.423.95^ - Rs.424.54~ Cr)
	* Company may allocate up to 60%  Shares of the QIB Portion to Anchor Investors. ^Lower Price Band and ~Upper Price Band
Mode of Payment	ASBA Mandatory ( No Cheque will be accepted)
Registrar	Link Intime India Pvt. Ltd.

 

Issue Highlights

 

•      RBL Bank Ltd ("RBL") is one of the fastest growing Private Sector Bank, having wide distribution network with presence through 197 interconnected branches and 362 interconnected ATMs in 16 States and Union Territories in India serving over 1.9 million customers.

•      RBL offers a comprehensive range of Banking Products and Services customized to cater to the needs of Large Corporations, Small and Medium Enterprises ("SMEs"), Agricultural customers, Retail customers and Development Banking & Financial inclusion (low income) customers.

•      RBL has maintained high CASA deposits. AS of 31^st March 2016 the CASA deposits representing 18.46% of the total deposits consisted of savings deposits (7.22% of total) and current deposits (11.42% of total).

•      RBL Posted a superior CAGR growth of 51% from FY2012 to FY2016 in its Advances Book.

•      The Net Interest Margin has grown from 2.68% in FY 2014 to 2.96% in FY2016.

•      RBL has maintained a capital adequacy ratio of 12.94% and 13.13% in FY16 & FY15 respectively.

•      The shares will be listed on BSE and NSE.

 

Background – Company & Promoters

Company and promoters

Incorporated on June 14, 1943, RBL Bank Limited ("RBL") a small Regional Bank in Maharashtra commenced their operation with 2 Branches in Kolhapur and Sangli. In August 1959, they were categorized as a "Scheduled Commercial Bank" within the meaning of the Reserve Bank of India Act, 1934. Though RBL has a 73-year operating history, they have transformed themselves in the past 6 years from a traditional Bank into a 'New Age' Bank while harnessing their heritage, relationships with customers and domain strengths.

 

Mr. Narayan Ramachandran is a non-Executive, non-Independent Director and the part-time Chairman of the Bank. He has wide experience in the field of Finance and Banking.

Mr. Vishwavir Ahuja is the Managing Director & CEO of the Bank. He has about 35 years of experience in the Banking and Financial Services sector.

Mr. Rajeev Ahuja is the Head – Strategy, Retail, Transaction Banking and Financial Inclusion, of the Bank. He has about 30 years of experience in Investment Banking and Financial Markets.

 

Business Overview

 

RBL Bank Ltd ("RBL") is one of India's fastest growing private sector banks in the last six years. It offers a comprehensive range of banking products and services customized to cater to the needs of Large Corporations, Small and Medium Enterprises ("SMEs"), Agricultural customers, Retail customers and Development Banking & Financial inclusion (low income) customers.

 

As of March 31, 2016, RBL has 197 interconnected branches and 362 interconnected ATMs spread across 16 Indian states and union territories serving over 1.9 million customers.

 

As part of the growth strategy, RBL acquired certain Indian businesses of the Royal Bank of Scotland ("RBS"), including the RBS's Business Banking, Credit Card and Mortgage Portfolio Businesses, in Fiscal 2014.

 

Highlights during the period :                                                                                                                   (Rs in Cr )

	FY2012	FY2016	CAGR (%)
Total Income	532.22	3,234.85	57.02%
Other Income	67.13	490.54	64.42%
Net Profit after Tax	65.10	292.48	45.59%
Other Deposits	4,739.33	24,348.65	50.55%
Advances	4,132.27	21,229.08	50.54%

 

Brief Financial Details*                                                                                     (Rs. In Crs)

Particulars	As at March 31,
	2013	2014	2015	2016
Share Capital	252.93	272.04	293.45	324.73
Reserves	1,352.73	1,612.16	1,935.95	2,663.51
Net Worth	1,605.66	2,013.70	2,229.40	2,988.24
Interest Earned	879.32	1,351.62	1,953.09	2,744.31
Other Income	126.44	260.97	403.41	490.54
Total Income	1,005.76	1,612.59	2,356.49	3,234.85
Total Income Growth (%)	-	60.34%	46.13%	37.27%
Profit  Before Tax	137.01	132.52	299.94	428.01
Net Profit after Tax	92.85	92.67	207.18	292.48
PAT as % to revenue	9.23%	5.75%	8.79%	9.04%
EPS (Rs.)	4.21	3.63	7.23	9.60
RoNW (%)	5.78%	4.60%	9.29%	9.79%
NAV (Rs. per share)	63.48	74.02	75.97	92.02
CAR (Capital Adequacy Ratio)(%)	17.11%	14.64%	13.13%	12.94%
ROE  (Return on Equity )(%)	7.28%	5.44%	9.58%	11.32%
ROA ( Return on Assets) (%)	1.05%	0.66%	1.02%	0.98%
NIM (Net Interest Margin) (%)	3.18%	2.68%	3.01%	2.96%

Source: RHP 

 

 

For additional information & risk factors please refer to the Red Herring Prospectus