EQT Private Capital Asia Divests Full Stake in RBL Bank for Rs 1,091 Crore

EQT Private Capital Asia, previously known as Baring Private Equity Asia, has divested its entire 7.89% stake in RBL Bank. This transaction, conducted through an open market deal, fetched Rs 1,091 crore. The shares were sold via Maple II BV on the BSE.

Representative image

Stake Sale Details

Maple II BV offloaded 4,78,40,700 shares of RBL Bank at an average price of Rs 228.08 each. This sale amounted to a total value of Rs 1,091.15 crore. Meanwhile, Societe Generale and Morgan Stanley Asia Singapore Pte acquired a combined 3.23% stake in the bank.

The shares purchased by Societe Generale and Morgan Stanley Asia Singapore Pte totalled 1,95,99,054 units. They paid an average price of Rs 446.85 crore for these shares. Information on other buyers remains unavailable.

Market Reaction and Financial Performance

Following the transaction, RBL Bank's stock declined by 2.95%, closing at Rs 230.40 per share on the BSE. Last week, RBL Bank reported a significant rise in its financial performance for the June 2024 quarter.

The bank's net profit surged by 29%, reaching Rs 372 crore for the quarter. Core net interest income saw a 20% increase to Rs 1,700 crore due to a 19% rise in advances. The net interest margin stood at 5.67%.

Historical Investment

In November 2020, Baring Private Equity Asia invested Rs 999 crore through Maple II BV to acquire a 9.44% stake in RBL Bank. This investment was aimed at strengthening the bank's capital base and supporting its growth plans.

Other income for RBL Bank grew by 18%, amounting to Rs 805 crore during the same period. This growth reflects the bank's diversified revenue streams and robust financial health.

The recent exit by EQT Private Capital Asia marks a significant move in the private equity landscape concerning Indian banks. The transaction highlights ongoing investor interest and activity within India's banking sector.

RBL Bank continues to show strong financial performance with consistent growth in profits and income streams. The bank's strategic initiatives and robust financial metrics position it well for future growth.

This divestment by EQT Private Capital Asia underscores the dynamic nature of investments in India's banking industry. It also reflects broader trends in private equity exits and market transactions within the sector.

The conclusion of this transaction signifies a notable shift in shareholder composition for RBL Bank while maintaining its trajectory of financial growth and stability.