Mid-sized private lender RBL Bank is the latest to join the capital raising spree among banks as it is set to raise funds through a preferential issue and a likely qualified institutional placement (QIP).
The bank informed the stock exchanges on Tuesday that its board will meet on Thursday to approve raising funds “by way of issue of equity shares on a preferential basis”, subject to the approval of its shareholders and other regulatory, and or, statutory approvals.
Apart from the preferential issue, reports say that RBL Bank may announce a QIP offering on Thursday that may see the participation of marquee investors.
This latest exercise comes after the bank mobilised Rs 2,700 crore through a combination of preferential issue and QIP process in December last year.
The transaction saw participation from investors that included Bajaj Finance, Bajaj Allianz, Eastbridge, Ward Ferry and Falcon Edge.
The RBL Bank stock on Wednesday ended with gains of 1.29 per cent, or Rs 2.35, at Rs 184.75 on the BSE on a day the benchmark index settled higher by over 86 points at 38614.79
Since March, a clutch of banks have raised funds through QIP and other modes as they beef up capital in anticipation of a possible rise in bad loans. These include Kotak Mahindra Bank, ICICI Bank, Axis Bank and HDFC Bank.
