Mahindra & Mahindra Ltd. sold stakes in RBL Bank Ltd, the private lender said in an exchange filing. This stake sale followed Emirates NBD's announcement late October of an open offer for 26% stake in RBL Bank.
Emirates NBD, the second largest bank of Dubai, is set to acquire a total of 60% stake in RBL Bank for $3 billion. The stake will be mopped up through preferential allotment. Emirates NBD is expected to help in developing its cross-border financing and non-resident businesses through this transaction.
Mahindra & Mahindra offloaded 3.45% stake worth Rs 678 crore in the private lender.
It was likely conducted at the floor price of Rs 317 per share, which is at 2.1% discount to the last closing price, according to the deal terms reviewed by NDTV Profit at a time when the seller was unannounced.
The open date for books is set to be on Nov. 5 and close on Nov. 6 at around 6:30 a.m. IST, according to the document. The expected settlement date was reported to be on Nov. 7.
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RBL Bank share price rose 2.52% to Rs 332 apiece. The stock pared some gains to trade 0.79% higher at Rs 326.9 apiece as of 9:50 a.m., compared to 0.05% advance in the NSE Nifty 50 index.
The stock rose 88.56% in 12 months, and 106.87% on year-to-date basis. Total traded volume so far in the day stood at 1.7 times its 30-day average. The relative strength index was at 68.45.
Out of 21 analysts tracking the company, 12 maintain a 'buy' rating, six recommend a 'hold' and three suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 0.3%.
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