Mumbai : One of the fastest growing private sector banks, The Ratnakar Bank limited (RBL), plans to raise Rs 1, 213 cr through its IPO. In its pre-IPO, the bank had offered 25,000,000 equity shares which were priced at Rs 195 per equity shares and for the fresh issue 16, 909, 628 equity shares is made available.
The company plans to use the sum from the IPO to boost its tier-I capital base as per Basel III requirements. The IPO will be open from 19 to 23, August.
The bank stated that through a fresh issue of equity shares it will raise up to Rs 833 cr. Meanwhile, the bank received up to Rs 500 cr in its pre-IPO placement. During pre-IPO, investors like CDC Group, DVI Fund (Mauritius) Limited, Rimco (Mauritius) Limited and Asian Development Bank, participated. With its NPAs lower than 1%, the bank has witnessed double digit growth in past few years. The 55-year old bank went through a major makeover in 2010 and since then, it has grown. The company also revealed that it has proposed to buy below 10% non-controlling stake in Utkarsh Micro Finance Ltd, which is subject to regulatory approval from the RBI.
RBL’s MD and CEO Vishwavir Ahuja said, “The future is critical than past.” He added that they are taking up challenge. He also added that the bank is hopeful that its capital adequacy ratio is likely to exceed 15% post the IPO.
Rajeev Ahuja, Head – Strategy, RBL Bank Ltd said that in next 4-5 years the bank will undertake technology-driven acquisition. Commenting on new businesses, he told The Free Press Journal, “We try to invest around 100 to 150 basis points from our net revenue into new areas of businesses driven by technology. We believe that banks have to continuously do that for next three to five years. We would be looking at that direction.” The bank is already working with many Bangalore-based FinTech companies. The Kolhapur-bank received support from likes of SBI chairman Arundhati Bhattacharya and banker Uday Kotak.
