New Delhi, Dec. 6 (PTI): RBL Bank on Friday said it has raised INR 2,025.27 crore from institutional investors through a qualified institutional placement offering (QIP) and will utilise the proceeds to fund business growth.
In a statement RBL Bank said "it has successfully concluded the QIP of INR 2,025 crore at an issue price of INR 351 per share (including premium of INR 341) pursuant to the allotment of 5.77 crore equity shares."
QIP is a tool used by listed companies to sell shares, debentures, or any other security, other than warrants that are convertible into stocks, to qualified institutional buyers such as mutual funds and foreign institutions.
"This capital infusion significantly enhances our capital adequacy, and positions us well to capitalise on the various growth opportunities available to us, especially as economic growth returns to normal," RBL Bank MD and CEO Vishwavir Ahuja said.
"The QIP increases the bank's total capital adequacy ratio to 15.3 per cent, core equity tier I ratio to 14.3 per cent, enabling the bank to remain capitalised well above the regulatory limits," the statement said.
The issue saw strong demand from domestic as well as foreign qualified institutional buyers (QIBs), the statement said. The shares of RBL Bank were trading at INR 363.65, down 0.48 per cent on BSE in the morning trade.