RBL Bank, the private sector has raised Rs 2,025.27 crore from institutional investors through a qualified institutional placement (QIP) offering and will utilise the proceeds to fund business growth. RBL Bank shares were down about 7 per cent in the noon trade to ?349, giving up early gains. The QIP opened on December 2 and closed on December 5.
RBL Bank said in the statement, it concluded the QIP of Rs 2,025 crore at the issue price of Rs 351 per share pursuant to the allotment of 5.77 crore equity shares. “The issue saw strong demand from domestic as well as foreign QIBs. The overall allocation to domestic investors including mutual funds and insurance companies is approximately 60 per cent with the balance allocated to foreign institutional investors in Asia and Europe,” also said. “We saw participation from our credit card partner, Bajaj Finance Ltd. and from other new investors especially long-only foreign institutional investors diversifying the shareholder base of the bank,” RBL Bank said.
QIP is a tool used by listed companies to sell shares, debentures, or any other security, other than warrants that are convertible into stocks, to qualified institutional buyers such as mutual funds and foreign institutions.