Emirates NBD to Launch an Open Offer to Acquire Shares in RBL Bank
RBL Bank, a private sector bank based in India, has recently revealed that Emirates National Bank of Dubai (Emirates NBD) is set to launch an open offer to acquire its equity shares from public investors. The open offer is slated to cover up to 415,586,443 equity shares, which equates to a 26% stake in the Indian bank. The offer price has been fixed at Rs 280 ($3.16) per share and the proposal is expected to be initiated on the 12th of December 2025.
Emirates NBD’s Strategic Acquisition Plan
This strategic move by Emirates NBD follows the announcement made last month about its intention to acquire a 60% stake in RBL Bank. The deal, estimated to be worth $3 billion, is planned to be executed through Emirates NBD’s Indian subsidiary. Post the completion of the purchase, the subsidiary is expected to integrate with RBL Bank.
Emirates NBD also intends to acquire shares from existing institutional investors through a preferential offer. The size of this allotment will depend on the response to the open offer. However, the shares to be acquired via this route are subject to Indian regulations that permit foreign investment in private sector banks only up to 74%. Furthermore, a single foreign institution can hold up to 15%, unless an exemption is granted by the Reserve Bank of India (RBI).
Other Significant Transactions
Alongside this, Indian carmaker, Mahindra & Mahindra, recently divested its entire 3.5% stake in RBL Bank. The transaction, which was executed at Rs317 ($3.5) per share, fetched the automobile company Rs6.78bn ($77.1m), indicating a 64% return on investment. The share price at which the transaction was executed was around 2% lower than the current share price.
Mahindra & Mahindra had originally acquired a 3.5% stake in RBL Bank in 2023 for Rs4.17bn. The recent transaction was executed through Kotak Securities, acting as the broker.
These strategic moves and transactions are expected to reshape the banking landscape in India, opening new avenues for growth and collaboration.
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