Private lender RBL Bank has raised an amount of Rs 1,680 crore from its existing shareholders by diluting their shares in exchange. The share price for existing shares was Rs 515 per share but in exchange it was Rs 527 on Friday.
RBL Bank board approves the discounted price for shares in order to raise capital from existing shareholders. HDFC Standard Life Insurance, ICICI Lombard General Insurance, Multiples PE, CDC Group and Steadview Capital Mauritius were the existing shareholders that took interest in the opportunity and bought 10 lakh to 1 crore shares each, as per filings made by bank.
Executive Director of RBL, Rajeev Ahuja said, A preference issue was a good option for RBL to raise funds as the Bank has still not yet completed its first year in the local market. He further added We felt this is a good time to do it. There was a lot of investors waiting to invest. Besides if we wanted to do a QIP, we had to start the process only in September, which is when we complete a year in the market.
The purpose of this capital raise is to augment the banks tier-I capital for supporting the future organic growth of the business as well as enabling the bank to capitalise on inorganic opportunities and for other general corporate purposes, the bank filing further added.