Private sector lender RBL Bank on Friday announced that it had raised Rs. 2,025 crore via qualified institutional placement (QIP), which would be used to fund the growth of the bank.
Private sector lender RBL Bank on Friday announced that it had raised Rs. 2,025 crore via qualified institutional placement (QIP), which would be used to fund the growth of the bank. Following the QIP, the bank’s capital adequacy ratio rose to 15.3%, while the core equity tier-I ratio stood at 14.3%.
The shares of RBL Bank on Friday closed at Rs. 338.8 on the BSE, down 7.28% from the previous close. The bank concluded the QIP with an allotment of 5.77 crore equity shares at an issue price of Rs. 351 apiece. “The issue saw strong demand from domestic as well as foreign QIBs (qualified institutional buyers),” a statement said.
About 60% of the shares were allocated to domestic investors including mutual funds and insurance companies, while the rest was allocated to foreign institutional investors in Asia and Europe.
“We saw participation from our credit card partner, Bajaj Finance, and from other new investors, especially long only foreign institutional investors diversifying the shareholder base of the bank,” it added.
Vishwavir Ahuja, managing director and CEO, RBL Bank, said, “This capital infusion significantly enhances our capital adequacy, and positions us well to capitalise on the various growth opportunities available to us, especially as economic growth returns to normal.”