In Thursday’s trading session, the shares of one of India’s leading private-sector banks slumped by 4 percent to hit an intraday low at Rs. 228, after nearly 4.8 crore equity shares of the bank changed hands through a block deal.
At 01:40 p.m., the shares of RBL Bank Limited were trading in the red at Rs. 228.65, down by 3.7 percent, compared to its previous closing price of Rs. 237.4.
What’s the News:
On July 25th, RBL Bank experienced a decline in its share prices following a block deal valued at Rs. 1,100 crores. This deal involved exchanging hands of 4.8 crore equity shares, constituting nearly 7.95 percent of the bank’s total equity, at an average price of Rs. 229.5 per share.
EQT, formerly known as Baring Private Equity Asia, through its vehicle Maple II B.V., could offload 4.78 crore shares, equivalent to a 7.9 percent stake in RBL Bank, looking to exit the bank and making Rs. 1,080 crore for its holdings, as per a few reports.
The transaction was executed with a floor price set at Rs. 226 per share, resulting in a total offer size of Rs. 1,081.2 crore.
According to the shareholding pattern as of June 2024, Maple II B.V., a vehicle of EQT, held nearly 4.78 crore equity shares in RBL Bank, representing a 7.89 percent stake in the bank.
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Financials:
The bank experienced significant growth in its revenue from operations, showing a year-on-year rise of nearly 20 percent from Rs. 1,422 crore in Q1 FY23-24 to Rs. 1,700.6 crore in Q1 FY24-25.
Similarly, its net profit increased during the same period from Rs. 319.5 crore to Rs. 351 crore, indicating a growth of around 10 percent YoY.
Stock Performance:
The stock has delivered nearly positive returns of nearly 3 percent in one year. However, the shares of RBL Bank have given negative returns of around 10.2 percent in the last six months as well as about 20 percent returns year-to-date.
About the company:
Founded in the pre-independence era in 1943, RBL Bank Limited is one of India’s leading private-sector banks.
RBL Bank is a banking company engaged in the business of providing a wide range of banking and financial services including wholesale banking, retail banking, treasury operations and other banking-related activities.
Written by Shivani Singh
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