RBL Bank Ltd. will raise up to Rs 6,500 crore through a mix of equity and debt instruments. The private sector lender will seek up to Rs 3,500 crore through qualified institutional placement of shares in one or more tranches, according to an exchange filing.
The QIP issue will constitute up to 15% of the post-issue paid-up equity share capital of the bank, in accordance with regulations.
RBL Bank will also tap the debt market to raise up to Rs 3,000 crore in one or more tranches on a private placement basis.
The lender will seek shareholders' nods for the capital raise plans at the ensuing 81st annual general meeting.
The board also approved an increase in the authorised capital of the bank from Rs 700 crore to Rs 1,000 crore, subject to the approval of the Reserve Bank of India and shareholders.
The board of AU Small Finance Bank Ltd. also approved plans to raise Rs 11,000 crore through a mix of equity and debt. The Jaipur-based lender will raise Rs 5,000 crore through QIP and other alternative modes and Rs 6,000 crore through one or more tranches via debt.
Shares of RBL Bank closed 1.88% higher at Rs 262.5 apiece ahead of the announcement, as compared to a 0.72% advance in the benchmark BSE Sensex.
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