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M&M Exits RBL Bank With Rs 678 Crore Sale as Emirates NBD Deal Heads to December Open Offer

The divestment follows RBL’s approval of a Rs 26,853 crore preferential issue to Emirates NBD, triggering a SEBI open offer from December 12.

Overview

  • Mahindra & Mahindra sold its entire 3.53% stake in RBL Bank for Rs 678 crore, booking a 62.5% gain on its July 2023 investment of Rs 417 crore.
  • The sale was executed via a reported block deal with a floor price around Rs 317 per share, with books open Nov 5–6 and settlement expected on Nov 7.
  • RBL’s board cleared a preferential issue of up to 95.90 crore shares at Rs 280 each to Emirates NBD, targeting a 60% holding for an aggregate Rs 26,853 crore.
  • Under SEBI takeover rules, Emirates NBD will make an open offer to acquire up to 26% of the expanded share capital at Rs 280 per share from Dec 12 to Dec 26.
  • RBL Bank said the transactions remain subject to regulatory filings and approvals, including Emirates NBD’s classification as promoter upon consummation.