RBL Bank Ltd IPO @ Rs 200 & a Listing Market Cap of over Rs 8000 crs

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

    1. 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

  1. 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.

    1. 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

  2. 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

    1. 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

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