Baring Private Equity Asia, now EQT, is set to exit RBL Bank as foreign investors look to sell their holdings that have got fattened by the record run in stocks.
EQT is likely to sell its entire stake in RBL through a ₹1,080-crore block deal on Thursday.
The private equity firm holds a 7.89 per cent stake or 4.78 crore shares in the private sector lender that are held by its arm Maple Ii B.V.
Based on the closing price of RBL Bank on Wednesday on the BSE, the shares are valued at nearly ₹1,136 crore.
Shares of RBL Bank on Wednesday settled at ₹237.40 on the BSE, a gain of 0.74 per cent over its previous close. It currently has a market cap of ₹14,396.36 crore.
The block deal is likely to see Maple Ii B.V. selling nearly all the shares at a floor price of ₹226 per share.
The floor price indicates a discount of nearly 5 per cent to the closing price of the RBL Bank share on Wednesday.
IIFL Securities is reportedly the sole bookrunner for the transaction.
With the markets trading near all-time highs, various investors, more particularly foreign entities have offloaded part of their stakes in listed firms over the past few months. These include BAT selling a 3.5 per cent stake of ITC in a deal worth nearly ₹17,500 crore.
Last month, Vodafone had offloaded an 18 per cent equity of Indus Towers through open market transactions on the NSE for ₹15,300 crore.
RBL Bank recently reported a 29 per cent jump in net profit to ₹372 crore for the April-June quarter.
During the quarter, its core net interest income rose 20 per cent to ₹1,700 crore following a 19 per cent jump in advances.
The bank’s other income rose 18 per cent to ₹805 crore. Its deposit growth stood at 18 per cent.
On the advances front, the bank is planning to focus on secured retail products that include business loans and housing loans.
Its gross non-performing assets ratio improved to 2.69 per cent from 3.22 per cent in the same quarter of the previous year.
The overall capital adequacy stood at 15.56 per cent, of which the core buffer was 13.85 per cent.
