Emirates NBD is exploring the acquisition of a “significant minority” stake in Indian stock exchange-listed RBL Bank, The Economic Times reported.
The investment in the form of a preferential allotment is expected to serve as a capital infusion into the Indian private sector lender, the financial daily reported, citing people familiar with the matter.
The UAE bank may own 15%-20% of the expanded equity capital base, below the open offer threshold, subject to regulatory approvals, the report said. The investment could reach an estimated INR3.17 billion ($369.40 million).
RBL is 100% publicly owned, with several local institutions holding small stakes. In April, British International Investment, the UK’s sovereign investment arm, sold its 3.82% stake.
However, the deal is likely to take place at a premium to the current price, said one of the sources.
RBL Bank shares have surged over 21 percent in the past month.
In May, the Reserve Bank of India granted in-principal approval to Emirates NBD for setting up a wholly owned subsidiary in India.
The Dubai lender was shortlisted to submit a bid to buy a majority stake in Indian state-backed IDBI Bank.
