DCB Bank up 4% after RBI approves AKFED's acquisition of 6.06 mn shares

The buying on the counter came after the RBI approved Aga Khan Fund for Economic Development S.A (AKFED) to acquire 60,58,394 equity shares of DCB Bank through a preferential issue

DCB Bank shares rose 4.3 per cent on BSE, logging an intra-day high at ₹128.45 per share. At 11:19 PM, DCB Bank’s share price was trading 2.44 per cent higher at ₹126.15 per share on BSE. In comparison, the BSE Sensex was flat at 80,422.25.

 

The company’s market capitalisation stood at ₹3,975.7 crore. The stock’s 52-week high was at ₹150.7, while 52-week low was at ₹103.35.

Why were DCB Bank shares surging?

The buying on the counter came after the Reserve Bank of India (RBI) approved Aga Khan Fund for Economic Development S.A (AKFED) to acquire 60,58,394 equity shares of DCB Bank through a preferential issue. AKFED is one of the promoters of the Bank.

 

“In relation to the proposed preferential issue of up to 60,58,394 (Sixty Lakh Fifty Eight Thousand Three Hundred Ninety Four Only) equity shares of face value of ₹10 each (‘Subscription Shares’), on a preferential basis, to Aga Khan Fund for Economic Development S.A. (‘AKFED’), one of the promoters of the Bank (‘Proposed Allottee’), we wish to inform you that the Bank is in receipt of a letter from the RBI dated September 29, 2025 wherein the RBI has accorded its approval to AKFED to acquire 60,58,394 equity shares of the Bank,” the filing read.  

 

The approval, communicated via RBI’s letter dated September 29, 2025, allows AKFED to acquire 60,58,394 equity shares of face value ₹10 each on a preferential basis. These shares will be subject to a lock-in of five years from the date of acquisition and cannot be encumbered under any circumstances.

 

The approval is valid for one year and is subject to compliance with the provisions of the Banking Regulation Act, 1949, RBI’s Master Direction on Acquisition and Holding of Shares or Voting Rights (January 16, 2023), FEMA, SEBI regulations, and other applicable laws.

 

Following the approval, the Bank will now initiate steps to proceed with the allotment of up to 60,58,394 equity shares to AKFED, in line with the Companies Act, 2013, SEBI’s Issue of Capital and Disclosure Regulations (ICDR), 2018, and other applicable provisions. 

 

Further, according to the filing, it shall be ensured that the aggregate holding of the AKFED in the Bank does not exceed the post allotment level (as a percentage of paid-up share capital or voting rights) at all times. If the aggregate holding of AKFED falls below 5 per cent, prior approval of RBI will be required to increase it to 5 per cent or more of the total paid-up share capital or voting rights of the Bank.