<article>Shares of<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=rbl"> RBL Bank Ltd</a> debuted at a premium of 21.64% on Wednesday, after the private sector lender received a stellar response for its Rs.1,211 core initial public offer (IPO) last week.</article>

Shares of<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=rbl"> RBL Bank Ltd</a> debuted at a premium of 21.64% on Wednesday, after the private sector lender received a stellar response for its Rs.1,211 core initial public offer (IPO) last week.
At 10.05am, RBL shares were up 24.89% on the BSE at Rs.281 a share compared with its issue price of Rs.225. The stock opened at Rs.273.70 and touched a high and a low of Rs.282.35 and Rs.273.70, respectively. The benchmark Sensex index traded 0.49% higher at 28481.99 points.
“The capital raised is to support future growth and business, to meet capital adequacy ratio of Basel III norms,” said Vishwavir Ahuja, managing director and chief executive officer of RBL bank.
“We believe in partnerships which is the key factor that differentiates us from others, “ said Ahuja.
RBL is the first private sector bank to go public in more than a decade. The last private sector bank to launch an IPO in India was Yes Bank Ltd, which raised Rs.315 crore in July 2005.
RBL’s issue drew subscriptions that were 69.62 times the issue size—excluding the anchor allotment—registering the highest overall subscription among IPOs of private sector banks.
Yes Bank’s IPO in June 2005 was subscribed 29.13 times, according to data by Capitaline, a corporate data provider.
The bank aims to raise its capital base for growth and comply with incremental capital needs under the Basel-III norms as well as the Reserve Bank of India’s norms.
In 2015-16, RBL Bank reported a revenue of Rs.3,234.85 crore, up from Rs.2,356.49 crore a year ago, and a profit of Rs.296.8 crore, up from Rs.208.45 crore a year ago.
The bank’s income grew at an annual rate of 50% compounded over the last five years. Its return on equity has also doubled in the past five years, according to data available in the issue documents.
RBL Bank has 197 branches and 362 ATMs across 16 states. Its shares are valued at 2.2 times price-to-book on historical value.
Also read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/rbl-bank-ipo-closes-subscribed-69-57-times-51439/">India: RBL Bank IPO closes, subscribed 69.57 times</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/50312-50312/">India: RBL Bank becomes first private lender in a decade to tap IPO, eyes $181m</a>
This story was first published on <a style="color: #000080;" href="http://www.livemint.com/Money/kRFxMHOAPiHxuqIkaP85QJ/RBL-Bank-makes-stock-market-debut-at-2164-premium.html">Livemint</a>

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India: RBL Bank makes stock market debut at 21.64% premium

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