RBL Bank, whose majority stake is set to be acquired by Dubai-based Emirates NBD, expects the first tranche of capital from the lender to come in within five to seven months after receiving regulatory approvals, according to reports.
According to Reuters, “RBL Bank CEO said that he expects the first tranche of capital from Emirates NBD to come in over five to seven months after the necessary regulatory approvals.”
One of the largest banking groups in the Middle East, Emirates NBD, is set to acquire a majority stake in RBL Bank Limited for $3 billion or ₹26,850 crore. This will be the largest-ever foreign direct investment and equity fundraise in the Indian banking sector, according to reports.
Emirates NBD to acquire 60% stake in RBL Bank
As Mint reported earlier, the proposed investment will be made via a preferential issue of up to 60 per cent of the share capital of RBL Bank, including a mandatory open offer for the purchase of up to 26 per cent stake from the public shareholders of the bank, as per Sebi regulations.
The bank will issue 95,90,45,636 shares to the UAE-based investor at ₹280, lower than Friday’s closing price of ₹299.70 on the NSE.
RBL Bank chairman Chandan Sinha said that the bank will be able to capitalise on Emirates NBD’s strong credit rating and its established relationships with companies, banks, and financial institutions across India.
Ernst & Young LLP (EY) – Investment Banking, J.P. Morgan and NeoStrat Advisors advised Emirates NBD on the deal. Shardul Amarchand Mangaldas & Co. was the legal advisor for ENBD and AZB & Partners for RBL Bank.
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