RBL Bank block deal: M&M likely to sell entire stake for Rs 682 crore today

Shares of RBL Bank are in focus on Thursday amid expectations of a substantial block deal involving Mahindra & Mahindra (M&M). According to reports, M&M is set to offload its entire 3.45% stake in the lender for ₹682 crore, setting the floor price at ₹317 per share. The floor price is said to be at ₹317 per share. The transaction is set to yield M&M a 64% return on its ₹417 crore investment made in July 2023 when it purchased a minority holding at ₹197 per share, reflecting the robust appreciation in RBL Bank's stock value over the period.

On another front, Emirates NBD Bank is set to invest up to ₹26,853 crore—approximately $3 billion—to acquire a 60% stake in RBL Bank. This investment will proceed via a preferential equity issue at ₹280 per share, following board approval to allot 96 crore new equity shares last month.

RBL Bank shares ended the previous session 1.96% lower at ₹322.3 apiece. The stock has seen a significant rally, gaining 16.9% over the past month, 63.5% in the last six months, and 104.3% year-to-date. These results have outpaced sector benchmarks and competitors, underscoring considerable investor interest and positive sentiment around the bank, especially in view of recent strategic investments and stake sales.