Overview

• Reports say Emirates NBD aims to become RBL Bank’s controlling shareholder via a fresh primary equity issuance.
• The proposed structure involves a preferential allotment of shares and warrants followed by a mandatory 26% open offer, targeting about 51% of the enlarged capital.
• The capital infusion is pegged at roughly Rs 15,000 crore (about $1.7 billion) to bolster RBL Bank’s balance sheet.
• Regulators are described as supportive, with the RBI expected to cap voting rights at 26% even if majority equity is acquired, according to sources.
• RBL’s board meets on Oct. 18, JPMorgan and EY are advising, the shares rose as much as about 3% on the news, and the bank said ongoing evaluations do not warrant a disclosure yet.