(Disclosure: I am market making in the shares of Ratnakar Bank)
Changing the culture of an organization is a very difficult task and yet as this initiative shows, the management at Ratnakar Bank seems to have done just that
Source:Chetna Ajgaonkar
(Disclosure:I am market making in Ratnakar Bank)
Analysts expect the RBL Bank IPO—the first primary market offering by a bank since Punjab and Sind Bank raised Rs.480 crore in 2010—to draw a strong response.
“We expect the Ratnakar Bank IPO to be subscribed by 20-30 times. Also, given the bank’s potential to capture a large market share, the investors are likely to get an annual market return of 20-25%,” said Vikas Khemani, chief executive for wholesale capital markets at Edelweiss Financial Services Ltd.
He added that RBL Bank can gain immensely at a time when public sector banks have been losing market share to private banks—a trend that is expected to accelerate with state-owned banks starved of adequate capital for growth. “This will be a litmus test for the bank because an IPO is always the lead indicator of things to come. How the IPO goes will be critical to subsequent issues and also what perception the bank develops in the minds of both retail and institutional investors,” said Robin Roy, associate director at audit and consultancy firm PricewaterhouseCoopers.
Apart from raising fresh funds, the issue will also help some of its existing investors exit. Over the last three years, global and local private equity and development funds have invested over Rs.1,400 crore in the bank in three tranches.
As recently as 10 April, RBL raised Rs.328 crore by selling fresh shares to UK government-owned development institution CDC Group Plc and Asia Capital and Advisors Pte Ltd along with existing shareholders World Bank-backed International Finance Corp. and Gaja Capital. Housing Development Finance Corp. Ltd, Norwest Venture Partners, Samara Capital, Beacon Capital, Faering Capital, TVS Shriram, Cartica Capital, Ascent Capital, Aditya Birla Private Equity, IDFC’s Spice Fund and ICICI’s Emerging India Fund are also shareholders in the bank.-from Mint
(Disclosure:I am market making in Ratnakar Bank)
(Disclosure:I am market making in the shares of Ratnakar Bank)
What were the things CDC was looking at when it picked up 4.8% stake in Ratnakar Bank in April?
We didn’t come into Ratnakar Bank for the momentum play, something which a foreign institutional investor would do. We are a DFI and not a pre-IPO investor. Ratnakar is deeply focused on financial inclusion, agri-lending and loans to the small and medium scale sector. These are high impact areas that create jobs. We are now working closely with the bank in all these areas.-from DNA
(Disclosure:I am market making in Ratnakar Bank)
Ratnakar Bank Ltd plans to launch an initial public offering of shares worth up to $250 million in the first quarter of next year, three sources directly involved in the process said on Tuesday.
Ratnakar Bank will issue new shares and some of the private equity investors will pare their holding in the share sale, said the sources, who declined to be named as they were not authorised to speak to the media ahead of a public announcement.
A Ratnakar Bank spokeswoman did not immediately comment.
The lender will hire at least four banks to manage the public offering within a week, two of the sources said. At least 10 banks are in the race to win the mandate for the IPO process, they said.-from BS