India: Private sector lender RBL Bank launches QIP to raise up to $285.7m

Private sector lender RBL Bank Ltd on Monday said that it is raising funds from institutional investors through a so-called qualified institutional placement (QIP) offering, the bank said in a filing with stock exchanges.

QIP is a tool used by listed companies to sell shares, debentures, or any securities, other than warrants that are convertible into stocks, to a qualified institutional buyer such as mutual funds and foreign institutions. A source had told Mint at the time that the fund raising will be a combination of preferential issue, along with a QIP for public market investors.

RBL said its board had approved a floor price of 352.57 apiece for the share sale. On Monday, RBL Bank shares closed at 373.25 per share, down 0.15%.

Mint reported on 25 November that RBL was planning to raise funds through the QIP route.

The QIP fundraising follows RBL’s Saturday announcement that it will raise 825.79 crore by way of preferential allotment to five investors – Bajaj Finance Ltd, foreign institutional investors East Bridge Capital Master Fund I and FEG Mauritius FPI Ltd, along with Ward Ferry Management Ltd-managed hedge fund WF Asian Reconnaissance Fund and Asia-focused stock hedge fund, lshana Capital.

These fundraising exercises follow RBL Bank’s announcement to shareholders at its annual general meeting on 9 July that it would raise equity capital not exceeding 3,500 crore.

Between July-September, the bank’s asset quality also worsened as its gross non-performing loans jumped 95% to 1,539 crore from 789.21 crore in the same period last year.

As a percentage of total loans, its gross bad loans ratio nearly doubled to 2.6% from 1.38% during the period while profit fell 73% to 54 crore. That put the bank’s stock under pressure as it tanked from a 52-week high of 716.40 on NSE in May this year to a 52-week low of 230.55 on 23 October.

This article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.