Overview

• RBL Bank will issue 95.9 crore shares at Rs 280 each to Emirates NBD via a preferential allotment, billed as the largest foreign investment and equity raise in India’s financial services sector.
• The transaction triggers a mandatory open offer for up to 26% of RBL’s shares, which the company says will take place before the allotment of the preferential issue.
• RBL has called an extraordinary general meeting on Nov. 12 to seek approval for the share issue, amendments to its charter and related foreign ownership provisions.
• Completion remains subject to approvals from the RBI, SEBI, CCI, DPIIT and the CCEA, with management guiding to a capital infusion in roughly five to eight months after clearances.
• Management says the infusion would raise net worth to about Rs 42,000 crore and support a planned merger of Emirates NBD’s India branches into RBL, subject to approvals, as RBL shares hit a five-year high on Monday.