Emirates NBD Considers Significant Investment in RBL Bank
Dubai-based Emirates NBD is reportedly looking to acquire a “significant minority” stake (between 15% and 20%) in India’s RBL Bank. This investment, expected to be in the form of a preferential allotment, would inject much-needed capital into the Indian private sector lender.
The deal, estimated to be around INR3.17 billion ($369.40 million), would keep Emirates NBD’s ownership below the threshold that would trigger an open offer, pending regulatory approvals. RBL Bank is currently 100% publicly owned, with various Indian institutions holding small stakes. Notably, British International Investment recently sold its 3.82% stake in April.
Sources suggest the acquisition will likely occur at a premium to RBL Bank’s current share price, which has seen a 21% surge in the past month. This move by Emirates NBD comes after the Reserve Bank of India granted it in-principle approval in May to establish a wholly-owned subsidiary in India.
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