Emirates NBD's $3-Billion Investment For 60% Stake In RBL: Timeline Of Deal
The effective date of the merger between the two banks will be April 1 2026.
Emirates NDB, Dubai's state-owned lender, is set to invest up to $3 billion into RBL Bank, according to statements from the latter's management in the second quarter fiscal 2026 conference call on Sunday.
Emirates NDB will be receiving a 60% stake in RBL Bank for the infusion of capital via preferential issue. The effective date of the merger between the two banks will be April 1, 2026.
The transaction will be undertaken for Rs 280 a share for a total of 95.9 crore shares, aggregating to a Rs 26,853 crore, with the news first breaking on Saturday. The bank stated that all regulatory and government approvals will be undertaken in a few months.
The investment is also expected to trigger an open offer for sale, along with taking RBL Bank's net worth to about Rs 42,000 crore. The first tranche of capital is anticipated to arrive in around five to eight months.
The open offer will initially be undertaken under the deal structure. Depending on open offer stake acquisition, the preferential issue size might be scaled down, RBL Bank's management said.
The preferential placement is to be followed 15 days after the open offer.
The primary issuance of the stake is up to 60%. If the open-offer stake acquisition goes beyond the minimum public shareholding, its preferential issue size will come down. The preferential share allotment will also be 60%.
After acquisition, the board's structure will be in the ratio of 50:50, with 50% being independent directors. It will also have an even number of members going ahead with an estimate of 10, 12 or 14 members.
This is the first time that a foreign investor will be buying majority stake in a healthy Indian bank. The fund infusion, according to RBL Bank is to aid in scaling its exsisting business and that it will continue to focus on low cost retail deposits.
Emirates NBD's involvement is also anticipated to bring the international presence that the domestic private sector bank currently lacks. Enabling RBL to tap Indian corporate firms with global operations. It is also expected to unlock opportunities in the Non-Resident Indian account segment.
RBL Bank stated that it was not looking to compromise on its core banking businesses. Its distribution network is expected to expand post the deal.
They further said that their aspiration is to move to the large banks league in three to five years and expect to be be among the largest banks that operate in the country today.
