RBL Bank shares rise 9% as Emirates NBD Bank to acquire 60% stake in lender; CLSA calls it 'landmark deal'

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26 Aug, 2025 12:21

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The shares of RBL Bank jumped more than 9 percent on October 20 after Emirates NBD announced plan to acquire a majority stake in the listed domestic private sector lender.

The shares of the company hit a fresh 52-week high of Rs 327.40 apiece today.

Emirates NBD to acquire up to 60% stake in RBL Bank:

Earlier on October 18, Emirates NBD Bank and RBL Bank approved the plan to enter into definitive agreements for the banking giant from the Middle East to acquire a controlling stake in the Indian private lender through a primary infusion of approximately $3 billion (approximately Rs 26,850 crore).

On October 13, Moneycontrol was the first to report that Emirates NBD had entered advanced talks to acquire a majority stake in RBL Bank in a mega proposed transaction which would trigger an open offer. The report mentioned that the preferential route was likely to be used for the deal which would be subject to RBI approval.

Later on October 15, Moneycontrol also reported that RBL Bank was set to become the largest subsidiary of Emirates NBD outside Dubai and was nearing a $3-billion deal.

The proposed investment will be made via a preferential issue of up to 60 percent, and will be subject to regulatory approvals and other customary closing conditions. As part of this transaction, ENBD will also make a mandatory open offer for the purchase of up to 26 percent stake from the public shareholders of RBL Bank, in accordance with SEBI's Takeover Regulations.

The Board of Directors of ENBD and RBL Bank also approved the amalgamation of the India branches of ENBD with and into RBL Bank as required by RBI guidelines. This amalgamation is expected to be completed after the execution of the preferential issuance into RBL Bank.

Here's what analysts say:

Analysts at CLSA called it a "landmark deal" for a financial services company in India, noting that benefits from the investment will be seen in the long term. The stake buy, which will also trigger an open offer for additional RBL shares, is the beginning of a new chapter for the Indian private lender, Citi analysts said.

The substantial influx of "confidence capital" significantly enhances medium-to-long term growth visibility for RBL Bank, they said.

Also read: Our LIVE blog on stock market updates

(With inputs from Reuters)

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.