The QIP launch follows the trend of many banks and NBFCs hitting the market to raise funds to soften the hit of potential bad loans triggered by the COVID-19 pandemic
The promoters own 44 percent, Asian private equity fund ADV Partners nearly 21 percent and Goldman Sach entities 4.86 percent of the Gurugram-based company.
The Monetary Authority of Singapore, Morgan Stanley Investment Management and French bank Societe Generale were the top three investors
ICICI Bank raised around Rs 15,000 crore while housing finance major HDFC and private lender Axis Bank raised Rs 10,000 crore each via QIP.
ICICI Bank is planning to raise around Rs 15,000 crore through this issue
These relaxations would not only help promoters in raising money but also protect them from hostile takeovers.
A source confirmed the QIP plans to Moneycontrol and said it could be launched within the next few weeks.
Banks, NBFCs and telecommunication companies dominated the QIP space, accounting for 79 percent (Rs 40,256 crore) of the overall amount, a PRIME Database report says.
The promoters have to shed 5.21 percent stake to comply with regulatory norms.
Veteran stock market investor Radhakishan Damani-led Avenue Supermarts, which operates supermarket chain DMart, has approved the launch of a qualified institutional placement (QIP) by the promoters.
"...the Special Committee of Directors for Fund Raising of the company has, at its meeting held on January 8, 2020 approved issue of equity shares on a QIP (basis)..." the company said in a BSE filing.
Along with IPOs, we believe that in secondary markets along with OFS/ Blocks there will be appetite for QIPs (primary fundraise into the company).
The board also approved reappointment of Rajiv Gandhi, CEO and Managing Director of the company, for a period of three years from April 1, 2020 to March 31, 2023, subject to approval of members through postal ballot process.
In a statement RBL Bank said "it has successfully concluded the QIP of Rs 2,025 crore at an issue price of Rs 351 per share (including premium of Rs 341) pursuant to the allotment of 5.77 crore equity shares."
The bank's board will meet on December 6 to consider and approve the fundraising, according to a BSE filing on Tuesday.
The fundraising exercise was launched on October 22 and the allotment of investors was completed on October 29. The issue price was fixed at Rs 1,719.05 a share.
MD & CEO Mohapatra said Central Bank will introduce repo rate-linked retail loan products by next month.
RBI has also set framework to build regulatory sandbox for innovation in fintech. Banks Board Bureau has begun its hunt for BoI, PNB heads
While Yes Bank fund raising may have helped in restoring confidence in the banking sector to some extent, the story may vary for other lenders, especially state-run banks.
Yes Bank closed the QIP on August 14 totalling Rs 1,930.4 crore at an issue price of Rs 83.55 per share.
The state-owned bank will take the Qualified Institutional Placement (QIP) route for fund raising and has started the process of shortlisting advisors, the bank’s MD and CEO Rajkiran Rai G said on August 2.
As of now, the bank plans to launch the issue in September, post its results.
Borrowing cost is likely to further go up by 20-30 basis points in the April-June quarter, before stabilizing in the coming quarters.
On Monday, DLF, the country's largest real estate firm in market value, had launched its qualified institutional placement (QIP) offering up to 17.3 crore shares to investors.
The Chennai-headquartered lender said it has raised funds at the rate of Rs 72 per share.