Shares of RBL Bank emerged as the top gainer among BSE ‘A’ Group after rallying 17.44% on August 24
The surge in the share price of RBL Bank has been triggered by the approval of the fundraising plan by its Board.
As the private banker announced on August 22 that its Board of Directors has approved fundraising of up to Rs 3,000 crore through the issuance of debt securities on a private placement basis. The funding is sought to support its business growth.
The fundraising will be subject to the approval of the shareholders, the bank said in a regulatory filing. Further, the board has approved the issuance of 1.75 crore additional equity stock options exercisable into an equivalent number of equity shares fully paid up to Rs 10 each, in addition to residual/remaining options which remain ungranted under ESOP 2018.
Also, in a separate step for financial rationalisation, the company has been offloading its equity stake in Kilburn Engineering Ltd. 67,50,000 equity shares representing 19.67% of the issued and paid-up share capital of Kilburn Engineering Ltd till August 23, 2022. The total consideration for the divestment amounted to Rs 30.61 crore. Shares of Kilburn Engineering were sold through the stock market secondary sale.
The growth-centric plans of the lender have fuelled market exuberance and as a result shares of RBL Bank zoomed on the bourses in the last 2 consecutive sessions taking the last one week’s share price gain to 21.1%. On August 24, the shares of RBL rallied 17.4% and closed at Rs 122.25. The shares of the company hit intra-day highs and lows of Rs 124.90 and Rs 102.80, respectively.
Shares of RBL Bank have underperformed the benchmark, in the last one year it has lost 34.03%, whereas the S&P BSE Sensex has returned 6.26%. The stock hit a 52-week low of Rs 74.15 on June 20, 2022, and a 52-week high of Rs 221.20 on November 10, 2021.
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