RBL Bank: Morgan Stanley, Societe Generale Buy Shares After Baring PE Asia Exits

Investment banks Morgan Stanley Asia and Societe Generale acquired shares of RBL Bank Ltd. via open market deals on Thursday, after prominent shareholder Baring Private Equity Asia divested its entire stake.

Morgan Stanley purchased 1.25 crore shares, representing 2.06% equity, for Rs 285 crore. Societe Generale invested Rs 161.7 crore for 1.17% stake in the private lender.

Baring PE, through its vehicle Maple II BV, sold 4.78 crore shares, or 7.89% stake, for Rs 228.08 per share, which is higher than the floor price offered. The share sale fetched the Hong Kong-based firm Rs 1,091 crore.

Last week, RBL Bank reported a 29% rise in net profit year-on-year to Rs 372 crore for the quarter-ended June, meeting Bloomberg estimates of Rs 344.5 crore. The lender's net interest income advanced 20% to Rs 1,700 crore.

Last month, RBL Bank said it would 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.

Shares of RBL Bank closed 2.95% lower at Rs 230.4 apiece, as compared to a 0.14% decline in the benchmark BSE Sensex.