PE investors set for exit as RBL Bank files for IPO

In a regulatory filing, RBL said it will offer an undisclosed amount of new shares, along with up to 17.6 million existing shares. Those shares include 9.5 million from Beacon, representing its entire stake in the bank, along with 3.5 million from Gaja, out of its current holding of 10.4 million shares.

The pricing and date of the offer have not been determined. RBL will use the funds to augment its tier one capital base in order to meet expected future capital requirements. It will also ensure compliance with Basel III and other regulatory guidelines.

Founded in 1943 as Ratnakar Bank, RBL offers comprehensive banking services for businesses and consumers across India. As of March, it had 183 branches and 348 ATMs in 13 states and territories. For the financial year ended March 2015, it reported INR23.6 billion in revenue, up from INR16.1 billion the year before; and INR2.1 billion in net profit, up from INR929 million.

RBL will also conduct a pre-IPO private placement of up to 25 million equity shares, to raise up to INR5 billion. If the placement is successful, the offering will be reduced accordingly.

AVCJ Research's records show the bank has received three rounds of funding worth around $270 million between them since 2011. In addition to Beacon, Gaja and Capvent, RBL's backers have included Norwest Venture Partners, Samara Capital, HDFC, Faering Capital, Baer Capital Partners, International Finance Corporation, Ascent Capital, IDFC Alternatives, Aditya Birla Capital, and CDC Group.

Beacon is an Indian growth capital vehicle operated by Dubai-based Baer Capital Partners. The fund closed at $200 million in 2006, and had its first exit in 2010 through the IPO of infrastructure management provider A2Z Group.

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• Topics
• South Asia
• Financials
• Exits
• India
• Beacon Private Equity
• Exit
• IPO
• Financial Services