RBL Bank made a stellar debut in markets on Wednesday, with the stock surging nearly 36 per cent to Rs 305.50 against its issue price of Rs 225. The private lender's market valuation currently stands at over Rs 11,000 crore. RBL Bank's listing is the first by an Indian bank in six years.
RBL Bank is the latest on a long list of companies that have returned spectacular listing gains to investors over the last few months. A spark rally in domestic markets has sparked a boom in initial public offerings (IPOs), with 2016 expected to be best year for IPOs in six.
"We are positive that the bank will ... use proceeds and internal cash generation to expand geographical region network," said Gaurang Shah, vice president at Geojit BNP Paribas Financial Services, adding he did not expect any distress in RBL's asset quality.
73-year old RBL Bank has been on an upward trajectory since 2010 when a new management led by former Bank of America executive Vishwavir Ahuja expanded it outside its home base in Maharashtra.
RBL Bank had assets worth about $5.9 billion as of March and now operates 201 branches across 16 states.
The Reserve Bank of India last year issued two new banking licenses and is creating permits for payments banks and small finance banks, niche lenders that can service the less affluent. Shares in micro lender Ujjivan Financial Services, which is setting up a small finance bank, have more than doubled in price since making their market debut in May. Equitas Holdings, another small finance bank permit holder, has surged more than 60 per cent from its IPO price in April.
Traders expected RBL Bank to list with strong gains as the IPO was subscribed nearly 70 times. RBL Bank's IPO was a hit among retail investors too, with their quota getting subscribed 5.70 times.
RBL's gains augur well for other financial services firms including ICICI Prudential Life Insurance and PNB Housing Finance that are expected to list this year.
RBL Bank shares closed 33 per cent higher at Rs 299.40, outperforming the broader Nifty that ended 0.5 per cent higher.
(With inputs from Reuters)
RBL Bank made a stellar debut in markets on Wednesday, with the stock surging nearly 36 per cent to Rs 305.50 against its issue price of Rs 225. The private lender's market valuation currently stands at over Rs 11,000 crore. RBL Bank's listing is the first by an Indian bank in six years.
RBL Bank is the latest on a long list of companies that have returned spectacular listing gains to investors over the last few months. A spark rally in domestic markets has sparked a boom in initial public offerings (IPOs), with 2016 expected to be best year for IPOs in six.
"We are positive that the bank will ... use proceeds and internal cash generation to expand geographical region network," said Gaurang Shah, vice president at Geojit BNP Paribas Financial Services, adding he did not expect any distress in RBL's asset quality.
73-year old RBL Bank has been on an upward trajectory since 2010 when a new management led by former Bank of America executive Vishwavir Ahuja expanded it outside its home base in Maharashtra.
RBL Bank had assets worth about $5.9 billion as of March and now operates 201 branches across 16 states.
The Reserve Bank of India last year issued two new banking licenses and is creating permits for payments banks and small finance banks, niche lenders that can service the less affluent. Shares in micro lender Ujjivan Financial Services, which is setting up a small finance bank, have more than doubled in price since making their market debut in May. Equitas Holdings, another small finance bank permit holder, has surged more than 60 per cent from its IPO price in April.
Traders expected RBL Bank to list with strong gains as the IPO was subscribed nearly 70 times. RBL Bank's IPO was a hit among retail investors too, with their quota getting subscribed 5.70 times.
RBL's gains augur well for other financial services firms including ICICI Prudential Life Insurance and PNB Housing Finance that are expected to list this year.
RBL Bank shares closed 33 per cent higher at Rs 299.40, outperforming the broader Nifty that ended 0.5 per cent higher.
(With inputs from Reuters)
RBL Bank made a stellar debut in markets on Wednesday, with the stock surging nearly 36 per cent to Rs 305.50 against its issue price of Rs 225. The private lender's market valuation currently stands at over Rs 11,000 crore. RBL Bank's listing is the first by an Indian bank in six years.
RBL Bank is the latest on a long list of companies that have returned spectacular listing gains to investors over the last few months. A spark rally in domestic markets has sparked a boom in initial public offerings (IPOs), with 2016 expected to be best year for IPOs in six.
"We are positive that the bank will ... use proceeds and internal cash generation to expand geographical region network," said Gaurang Shah, vice president at Geojit BNP Paribas Financial Services, adding he did not expect any distress in RBL's asset quality.
73-year old RBL Bank has been on an upward trajectory since 2010 when a new management led by former Bank of America executive Vishwavir Ahuja expanded it outside its home base in Maharashtra.
RBL Bank had assets worth about $5.9 billion as of March and now operates 201 branches across 16 states.
The Reserve Bank of India last year issued two new banking licenses and is creating permits for payments banks and small finance banks, niche lenders that can service the less affluent. Shares in micro lender Ujjivan Financial Services, which is setting up a small finance bank, have more than doubled in price since making their market debut in May. Equitas Holdings, another small finance bank permit holder, has surged more than 60 per cent from its IPO price in April.
Traders expected RBL Bank to list with strong gains as the IPO was subscribed nearly 70 times. RBL Bank's IPO was a hit among retail investors too, with their quota getting subscribed 5.70 times.
RBL's gains augur well for other financial services firms including ICICI Prudential Life Insurance and PNB Housing Finance that are expected to list this year.
RBL Bank shares closed 33 per cent higher at Rs 299.40, outperforming the broader Nifty that ended 0.5 per cent higher.
(With inputs from Reuters)
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