RBL Bank Ltd (earlier The Ratnakar Bank Ltd) has finally filed it’s Draft Red Herring Prospectus with SEBI yesterday,Tuesday,June 23,2015
The IPO will in all probability be in a Band of Rs 190 to Rs 200
FY 15 Year End Networth is @ Rs 2200 crs with Book Value @ Rs 75 levels with Equity at Rs 300 cr levels.PAT was Rs 207 crs giving an EPS of @ Rs 7
The indicated IPO Pricing of Rs 200 would mean PE of just under 30 times and a PBV of 2.7
Post IPO the Networth will move to Rs 3300 cr levels with Equity @ Rs 355 crs and Book Value rising to Rs 93 levels
The Listed DCB Bank @ Rs 129(FV Rs 10) is more or less similar in size to RBL Bank.In FY 15 it earned Rs 191 crs on an Equity of Rs 282 crs giving an EPS of Rs 7.2.The Networth is Rs 1534 crs giving a BV of Rs 54.PE & PBV are 18 and 2.4.Market Cap is Rs 3654 crs
Post IPO of RBL a similar 2.4 PBV if applied on the post IPO BV of Rs 93 will mean a listing level of Rs 225…more likely Rs 250
Market Cap of RBL Bank on Listing should therefore be over Rs 8000 crs
11 thoughts on “RBL Bank Ltd IPO @ Rs 200 & a Listing Market Cap of over Rs 8000 crs”
Why not just buy Karnataka Bank or South Indian Bank, trading at less than book, P/E<10.
Kris,agree with you to an extent but RBL Bank will be a new listing with well known private equity players and a new high profile Top Management Team that’s scaled up operations in the last five years and should keep up the momentum…the IPO will attract Investors at Rs 200
Sir can u let me know your views on Hinduja Venture
Hi Sir,
I heard news that RBL is buybacking shares.Would it be forceful for investors to sell shares to RBL at buybacking price. Because I heard that they are offering price of 120 where as it may go for an ipo with above 200. Could you please help me to understand the RBL’s BUYBACK rules.
Thanks in advance.
SEBI cleared the RBL IPO after a long delay on condition that pre IPO they initiate a buyback to offer many minority shareholders allotted shares years ago a chance to exit before the IPO
This condition is being complied with…You need not participate
Hi , Is it worth picking up RBL pre-IPO unlisted shares and if so what is the maximum price one should pay.
Thanks
Hi Naresh….two & a half years ago these shares were available privately for ₹ 110 to ₹ 125 …the IPO is now passed….any pre IPO allotment or transfers will have a one year lock in….IPO pricing is indicated at ₹ 200 thereabouts…my sense,even if you’re convinced it’s a great story going forward, is to wait for this & listing and see how the trend unfolds & ….better option than a one year lock in…have covered it’s valuation in one of my training sessions
Any Expected date of this IPO???
how many provide ipo share per person
Hi what is the stock code of RBL ?
RBL had a Brilliant listing yesterday,Wednesday,August 31,2016 and closed @ Rs 300,up over 30% from IPO Pricing.Today it’s over Rs 310.The BSE Code is 540065 & NSE Symbol is RBLBANK