RBL Bank Raises Rs 163 Crore From Sale Of Stake In DAM Capital Advisors IPO

RBL Bank Ltd. has exited DAM Capital Advisors Ltd. by selling its entire stake in the company through an offer for sale process during the initial public offering. The bank has received Rs 163.32 crore through the OFS.

After this transaction the bank doesn't have any equity shareholding in DAM Capital.

The shares were sold at Rs 283 apiece, according to the exchange filing by the bank on Thursday. The bank has sold 57.71 lakh shares as part of the DAM Capital IPO. The IPO opened on Dec. 19 and closed on Dec. 23. However, the corporate action has been initiated on Dec. 26.

The bank in the regulatory filing also added that it had earlier offloaded a 1.50% stake comprising 10.60 lakh shares in the secondary market.

RBL Bank's price target was downgraded by Morgan Stanley to Rs 160 from the earlier Rs 180 on Dec. 20. The revised target reflects concerns over higher credit costs and shrinking margins.

Morgan Stanley also lowered its earnings projections for RBL Bank, cutting forecasts by 1% for fiscal 2025, 9% for fiscal 2026, and 2% for fiscal 2027. This adjustment was attributed to challenges related to asset quality in the bank's credit card and micro-lending portfolios.

RBL Bank's stock rose as much as 3.32% during the day to Rs 168.74 apiece on the NSE. The stock closed 0.55% lower at Rs 162.41 per share. This compares with a 0.10% advance in the benchmark Nifty 50. It has fallen 37.67% in the last 12 months and 42.93% year-to-date.

Out of 33 analysts tracking the company, 11 maintain a 'buy' rating, six recommend a 'hold,' and six suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 25.7%.