BackRBL Bank aims to launch IPO in third week of August
RBL Bank receives clearances from Sebi on issues relating to its shareholding pattern
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Mumbai: Private sector lender RBL Bank aims to launch its initial public offering (IPO) in the third week of August, said a senior official of the bank, who did not want to be named.
The bank has received clearances from the Securities and Exchange Board of India (Sebi) on the issues relating to its shareholding that were flagged by the regulator last year.
RBL Bank, which filed its draft prospectus with Sebi on 23 June 2015, has been waiting for its approval.
The regulator withheld approval as RBL had in the past issued securities to more subscribers than permitted under the Companies Act, 2013.
In its draft prospectus, RBL Bank disclosed that in 2003 and 2006, it issued shares to more than 200 subscribers. The previous board had allotted shares via rights issues to 2,591 investors on 19 February 2003. It further allotted shares to 1,969 investors through another rights issue on 21 February 2006, according to risk factors highlighted by the company in its draft prospectus. These share issues do not comply with the new rules.
In December, Sebi announced that any offer or allotment of securities shall be considered as a public issue if the number of allottees exceeds 200 in a financial year under the Companies Act, 2013, as against the cap of 49 allottees provided in the Companies Act, 1956.
As per the 2013 Act, if there are more than 49 investors and up to 200 investors, a company has the option of refunding the investors with interest and no penal action would be taken.
However, even after the amendment, RBL Bank’s past issuances continued to be in violation of the norms as the bank had issued shares to more than 200 investors.
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“We are waiting for the final approval on our revised document. It shouldn’t take more than a few days," said the bank official quoted earlier.
RBL Bank had earlier planned to raise ₹ 1,100 crore through its IPO. On 21 December 2015, RBL Bank raised ₹ 488 crore through a pre-IPO round of fund-raising.
The private lender raised the funds from international investors, including the Asian Development Bank and the UK government’s development finance arm CDC Group Plc, among others. Shares were issued to these investors at ₹ 195 apiece.
“We can hit the market anywhere between 8 and 25 August. But there are a few holidays this month," the official explained.
In the last financial year, the bank reported a net profit of ₹ 296.8 crore, higher than ₹ 208.45 crore a year ago. The bank’s revenue for the year ended 31 March was at ₹ 3,234.85 crore, as compared with ₹ 2,356.5 crore in the previous year.
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