RBL Bank Ltd. is looking to raise about Rs 1,500 crore (around $200 million) within a week through a share sale that would be a mix of a preferential issue and a qualified institutional placement, according to two people privy to the development.
The private lender recently concluded roadshows and met with several investors, said one of the persons cited earlier. The bank, the person said asking not to be identified as the details are private, would first launch the preferential share sale. The RBL Bank QIP, this person said, would then be done in tranches.
IDFC Securities would be the lead banker for the equity issue, the second person cited earlier said on the condition of anonymity.
RBL Bank and IDFC Securities refused to comment on the matter.
At the current share price, the fundraise would lead to an equity dilution of about 9 percent, according to BloombergQuint’s calculations. The lender would use the funds raised to improve its capital adequacy ratio—which was 12.3 percent as of the quarter ended September—by at least 200 basis points.
RBL Bank secured shareholder approval for the fundraising plan at its annual general meeting in July. It had indicated to analysts at an earnings call for the quarter ended September that the fundraising may be completed before the end of the ongoing fiscal.
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