RBL Bank sets floor price for QIP at Rs352.57/share

The board will meet on or after December 5 to consider the issue price.

Dec 03, 2019 03:12 IST India Infoline News Service

RBL Bank
RBL Bank said that it will raise funds by issuing equity shares through the qualified institutional placement (QIP) route. The private lender said its board approved Rs352.57 per share as a floor price for the share sale.

“Approved the floor price for the QIP being Rs352.57 per equity share based on the pricing formula as prescribed under Regulation 176 of the SEBI ICDR Regulations (the "Floor Price"), and the Committee may at its absolute discretion, offer a discount of not more than 5% on the Floor Price; and approved the preliminary placement document dated December 2, 2019 in connection with the QIP,” the bank said in the filing.

“The Committee is scheduled to be held on or after December 5, 2019, to consider and approve the issue price including a discount, if any thereto as permitted under the SEBI ICDR Regulations for the Equity Shares to be allotted to qualified institutional buyers pursuant to the QIP,” the bank added.

The bank’s board agreed to allot 24.24mn shares at Rs340.70 apiece on a private placement basis in accordance with the provisions of the Companies Act, 2013, and the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Further, the board of directors had approved the fundraising plan on April 18, 2019, and shareholders passed the Special Resolution for the same at their Annual General Meeting held on July 9 earlier this year. Also, the board members have approved the condensed consolidated interim financial statements and condensed standalone interim financial statements for the 6 months ended September 30, 2019, of the bank.

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