In a significant transaction on morning, 4.81 crore shares of RBL Bank, a Mumbai-based private sector lender, changed hands in a block deal. The shares were traded at ₹229.5 per share, resulting in a total transaction value of ₹1,100 crore. This volume represents 7.9% of the bank's total equity.
Key Highlights:
Background and Context:
On the same day, CNBC-TV18 reported that Baring Private Equity Asia, through its vehicle Maple II B.V., was likely to sell its entire stake in RBL Bank via block deals. The sale was expected to occur at a floor price of ₹226 per share, representing a 5% discount to the previous closing price. The total offer size was ₹1,081.2 crore, accounting for 7.9% of the bank's equity.
Previous Holdings:
As per data from the Bombay Stock Exchange, Maple II B.V. held a 7.89% stake in RBL Bank at the end of the first quarter, suggesting that this transaction represented a complete exit.
Financial Performance:
In the first quarter, RBL Bank reported a 29% increase in net profit, reaching ₹371.5 crore, surpassing the CNBC-TV18 poll estimate of ₹339.5 crore. The bank's net interest income (NII) also rose by 19.5% to ₹1,699.9 crore compared to ₹1,422.3 crore in Q1 FY24.
Market Reaction:
Following the block deal announcement, shares of RBL Bank traded 3.4% lower at ₹229.80. The stock has experienced a 20% decline so far in 2024.
Conclusion:
This significant block deal highlights a substantial shift in RBL Bank's equity structure and reflects investor sentiment in the market. With Baring Private Equity Asia potentially exiting its stake, market participants will closely watch the bank's performance and strategic decisions in the coming months.
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