RBL Bank raises ₹2,025 crore through QIP1 min read . Updated: 06 Dec 2019, 01:42 PM IST
- RBL Bank said it concluded the QIP of ₹2,025 crore at the issue price of ₹351 per share
- Bajaj Finance also took part in the QIP
Private sector lender RBL Bank today said it has raised ₹2,025.27 crore from institutional investors through a qualified institutional placement (QIP) offering and will utilise the proceeds to fund business growth. RBL Bank shares were down about 7% in noon trade to ₹349, giving up early gains. The QIP opened on December 2 and closed on December 5.
In a statement RBL Bank said it concluded the QIP of ₹2,025 crore at the issue price of ₹351 per share pursuant to the allotment of 5.77 crore 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% with the balance allocated to foreign institutional investors in Asia and Europe," RBL Bank said in a statement.
"We saw participation from our credit card partner, Bajaj Finance Ltd. and from other new investors especially long only foreign institutional investors diversifying the shareholder base of the bank," RBL Bank said.
QIP is a tool used by listed companies to sell shares, debentures, or any other security, other than warrants that are convertible into stocks, to qualified institutional buyers such as mutual funds and foreign institutions.
"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," RBL Bank MD and CEO Vishwavir Ahuja said.
"The QIP increases the bank's total capital adequacy ratio to 15.3%, core equity tier I ratio to 14.3%, enabling the bank to remain capitalised well above the regulatory limits," the statement said.