RBL Bank on August 29 announced that its board has approved a plan to raise up to Rs 3,500 crore through a Qualified Institutions Placement (QIP) of equity shares, and up to Rs 3,000 crore through the issuance of debt securities.
This takes the total fund infusion approved by RBL Bank's board to Rs 6,500 crore through a mix of equity and debt instruments.
Speaking about the QIP, RBL Bank said that the board has approved the plan to raise "funds by way of a Qualified Institutions Placement by means of issuance of Equity Shares (QIP) at an appropriate time for an amount upto Rs. 3,500 crore, in one or more tranche or tranches."
The raising of funds through the issuance of debt securities will also be done in one or more tranches on a private placement basis from time to time, the bank added.
The announcement was made in the post market hours of August 29. The shares of the private lender closed more than 4 percent higher at Rs 262 apiece, after Societe Generale bought nearly 33 lakh shares of the company at an average price of Rs 250.57 apiece, according to data on bulk deals available on NSE.
Investec recently issued a 'Buy' call on the stock with a target price of Rs 300 per share. The bank has highlighted that RoA should trend upwards to 1 percent by Q4FY26, primarily aided by normalization of NIMs. The bank expects loan growth in FY26 to be above the industry average, and asset quality to improve. Investec also said the bank does not have meaningful exposure to unsecured MSME loans.
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