Private sector lender RBL Bank on Friday said it has raised Rs 2,025.27 crore from institutional investors through a qualified institutional placement (QIP). The QIP opened on December 2, 2019 and closed on December 5, 2019.
"The bank has successfully concluded the QIP of Rs 2,025 crore at the issue price of Rs 351 per share (including premium of Rs 341) pursuant to the allotment of 5.77 crore equity shares," RBL Bank said in a filing to the Bombay Stock Exchange.
RBL Bank's QIP saw participation from its credit card partner Bajaj Finance as well as other new investors, especially 'long run' foreign institutional investors.The lender said the capital raising committee at its meeting today approved the issue and allotment of 5.77 crore equity shares to eligible qualified institutional buyers (QIBs) at an issue price of Rs 351 per share (including a premium of Rs 341 per share), aggregating to Rs 2,025 crore. The bank had received approval for the same from its board on April 18, 2019 followed by approval from its shareholders at its AGM held on July 9, 2019.
The QIP increases the bank's total capital adequacy ratio to 15.3 per cent, core equity Tier I ratio to 14.3 per cent, enabling the bank to remain capitalised well above the regulatory limits.
"The issue saw strong demand from domestic as well as foreign QIBs. The overall allocation to domestic investors including mutual funds and insurance companies is approximately 60 per cent with the balance allocated to foreign institutional investors in Asia and Europe," RBL Bank said in the exchange filing.
Commenting on the development, Vishwavir Ahuja, MD and CEO, RBL Bank said, "We thank our investors for reinforcing their confidence in the management, the franchise strength and growth potential of the Bank and are extremely happy about the strong interest received from various existing and new investors. This capital infusion significantly enhances our capital adequacy, and positions us well to capitalize on the various growth opportunities available to us, especially as economic growth returns to normal."
Following the stock allotment, the paid up share capital of the bank increased from 43.07 crore equity shares of Rs 10 each to 48.84 crore equity shares of Rs 10 each aggregating Rs 488.44 crore.
Ahead of the announcement, shares of RBL Bank closed Friday's trade at Rs 338.80 apiece, down 7.28 per cent, on the BSE.
Edited by Chitranjan Kumar