RBL Bank extends gain on plan to raise fund via preferential issue

RBL's board of directors is scheduled to meet on Saturday, November 30, 2019 to consider the raising of funds by way of issue of equity shares of the Bank on a preferential basis.

RBL Bank shares were up 4 per cent to Rs 383 on the BSE on Thursday, extending its Wednesday’s 6 per cent surge after the private sector lender announced that its board will meet on Saturday, November 30, to consider fund raising plan through preferential issue.

The counter has seen huge trading volumes today, with a combined 13.83 million equity shares changing hands on the NSE and BSE till 10:41 am. In comparison, the S&P BSE Sensex was up 0.11 per cent at 41,079 points.

“A meeting of the board of directors of the Bank is proposed to be held on Saturday, November 30, 2019 to consider the raising of funds by way of issue of equity shares of the Bank on a preferential basis,” RBL Bank said in a regulatory filing on Wednesday after market hours.

The bank had, in its Annual General Meeting held on July 9, 2019, passed a resolution for raising of equity capital.

In the past nine trading days, the stock has rallied 20 per cent after business channel CNBC-TV18 reported that the bank was in talks with Bajaj Holdings & Investment, Chrys Capital, and Blackstone for a proposed share sale.

The bank, in a filing, on November 21 clarified to the exchanges that no such event had occurred which required the bank to make any announcement.

With today’s gain, the market price of RBL Bank has surged 66 per cent from its all-time low of Rs 231 touched on October 23, 2019.