Private sector lender RBL Bank has raised Rs 2,025.27 crore from institutional investors through a qualified institutional placement (QIP). The proceeds will be used to fund business growth.
In a statement, RBL Bank said it concluded the QIP, which was open between December 2 and 5, at an issue price of Rs 351 per share pursuant to the allotment of 57.7 million equity shares.
“The issue saw strong demand from domestic as well as foreign QIBs. The overall allocation to domestic investors, including mutual funds and insurance companies, is approximately 60 per cent with the balance allocated to foreign institutional investors in Asia and Europe,” RBL Bank said in a statement. It added that its credit card partner, Bajaj Finance Limited, has also taken part in the funding exercise.
RBL Bank MD and CEO Vishwavir Ahuja 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”.
“The QIP increases the bank’s total capital adequacy ratio to 15.3 per cent and core equity tier-I ratio to 14.3 per cent, enabling the bank to remain capitalised well above the regulatory limits,” the statement said.
The Bank had received approval for the fundraising from its Board on April 18, followed by approval from its shareholders at its AGM held on July 9.
QIP is a tool used by listed companies to sell shares, debentures, or any other security convertible into stocks other than warrants, to qualified institutional buyers such as mutual funds and foreign institutions.
Source: Business-Standard