InvestorQ : Can you tell me about the big investment that RBL Bank has got and does that make the stock attractive?
diksha shah made post

Can you tell me about the big investment that RBL Bank has got and does that make the stock attractive?

Answer
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Juvina Maggie answered.
2 months ago


Barings PE has led a clutch of investors to infuse equity to the tune of Rs.1566 crore into RBL Bank. It may be recollected that after the exposure of RBL to Coffee Day group came to light, the stock price had been battered badly on NPAs and asset quality worries.

In fact, over the last one year or so, the bank had been under distinct pressure due to concerns over its asset quality. Now the equity investment by PE funds comes as a positive cue and also capital relief for RBL Bank at this juncture.

This is how the investment will be broker up. Baring PE will invest a sum of Rs.1000 crore into the bank. Other investors like ICICI Prudential Life, CDC Group and Gaja Capital will chip in with the balance money, completing the total infusion of Rs.1566 crore.

For RBL Bank, this infusion will help improve its capital adequate ratio to 17.4%, a great relief in the post-moratorium scenario. RBL Bank will issue 8.84 crore shares to the investors at a price of Rs.177/share. This will be RBL Bank’s first major equity funding deal this year.