RBL Bank drops after announcing fresh issue of shares

RBL Bank fell 1.17% to Rs 518.90 at 13:09 IST on BSE after the bank's board approved the proposal to issue 3.26 crore equity shares on preferential basis.

The announcement was made during market hours today, 7 July 2017.

Meanwhile, the S&P BSE Sensex was down 25 points or 0.08% at 31,344.34

On BSE, so far 5.56 lakh shares were traded in the counter as against average daily volume of 2.83 lakh shares in the past one quarter. The stock hit a high of Rs 524.50 and a low of Rs 508.90 so far during the day. The stock had hit a record high of Rs 600 on 3 May 2017. The stock had hit a record low of Rs 273.70 on 31 August 2016.

The large-cap bank has equity capital of Rs 376.72 crore. Face value per share is Rs 10.

RBL Bank said that the bank's board has approved the proposal to issue 3.26 crore equity shares on preferential basis to the one or more investors at Rs 515 per equity share totalling to Rs 1680 crore. The investors include ABG Capital, CDC Group PLC, Global IVY Ventures LLP, HDFC Standard Life Insurance Company, ICICI Lombard General Insurance Company, LTR Focus Fund, Multiples Private Equity Fund II LLP, Plenty CI Fund I, Plenty Private Equity Find I and Steadview Capital Mauritius.

The purpose of this capital raise is to augment the bank's tier 1 capital for supporting the future organic growth of business as well as enabling the bank to capitalize on inorganic opportunities and for other general corporate purposes, RBL Bank.

RBL Bank's net profit rose 54.59% to Rs 130.13 crore on 35.17% growth in total income to Rs 1222.87 crore in Q4 March 2017 over Q4 March 2016.

RBL Bank is a private sector bank. It currently services over two million customers through a network of 237 branches and 375 ATMs spread across 16 Indian states and Union Territories.

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