RBL Bank board approves plan to raise up to ₹6,500 crore via equity and debt

On Thursday, June 27, RBL Bank announced that its board of directors has approved plans to raise capital through both equity and debt instruments. The board has sanctioned raising up to ₹3,500 crore via a Qualified Institutions Placement (QIP) by issuing equity shares. This fundraising will occur in one or more tranches and will represent up to 15% of the bank’s post-issue paid-up equity share capital. This initiative is contingent on shareholder approval and the necessary regulatory and statutory clearances.

According to a stock exchange filing, the board has also approved issuing debt securities up to ₹3,000 crore through a private placement. This issuance will comply with the applicable SEBI Listing Regulations and will also require approval from shareholders and relevant regulatory bodies.

The bank stated, “Issuance of debt securities, in one or more tranches, on a private placement basis, from time to time, up to an amount of ₹3,000 crore, pursuant to Section 42 and other applicable provisions of the Companies Act, 2013, applicable SEBI Listing Regulations, and subject to the approval of the Members and such Regulatory/Statutory approvals as may be applicable.”

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