RBL Bank Ltd. shares rose during early trade on Tuesday after NDTV Profit reported UAE's Emirates NBD is set to buy a controlling stake in the Mumbai-based private Indian lender.
The Dubai-based lender will acquire around 60% stake in RBL Bank for approximately $3 billion, the persons privy to the development said, adding that the transaction is expected to be announced soon.
According to sources in the know, this will be done entirely using the fresh equity issuance route, meaning that the entire capital will be directly infused into the bank. The transaction will be conducted through the Indian wholly-owned subsidiary of Emirates NBD, after which it will be merged into RBL Bank. This is the first such transaction being worked on in India.
While Reserve Bank of India has not budged on its 26% voting rights cap in this deal, it will likely allow Emirates NBD to acquire and keep its majority stake in RBL Bank. Considering its dispersed ownership, Emirates NBD is confident that no major resolutions can be passed without the Dubai-based lender saying so.
The board will meet on Oct. 18 to consider and approve the financial results for the period ended Sept. 30, 2025.
RBL Bank Share Price Movement
RBL Bank share price advanced 2.6% intraday to Rs 297.45 apiece. The benchmark NSE Nifty 50 was up 0.3%.
The stock has risen 42% in the last 12 months and 86% on a year-to-date basis. The relative strength index was at 72.
Thirteen out of the 23 analysts tracking RBL Bank have a 'buy' rating on the stock, four recommend a 'hold' and six suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets is Rs 270, which implies a potential downside of 7%.
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