HomeFinance NewsBajaj Holdings, Chrys Capital & Blackstone in talks with RBL Bank for potential investment

Bajaj Holdings, Chrys Capital & Blackstone in talks with RBL Bank for potential investment

While talks with Chrys Capital and Bajaj Holdings & Investment are at an advanced stage, negotiations with Blackstone are at initial stages, said the source. Here are the details

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By Ritu Singh  November 22, 2019, 7:28:15 AM IST (Updated)

Bajaj Holdings, Chrys Capital & Blackstone in talks with RBL Bank for potential investment
Private sector lender RBL Bank is in talks with three potential investors for a share sale to raise capital, two people aware of the development told CNBC-TV18 on the condition of anonymity.


The bank is in talks with a strategic investor and two private equity players for the proposed share sale, which could help it raise approximately Rs 2,000 crore to shore up its capital base, said a person in the know.

Both Chrys Capital and Blackstone have held talks with RBL Bank to potentially make an equity investment, as per the person quoted above, who added the bank is also negotiating a deal with Bajaj Holdings and Investment.

While talks with Chrys Capital and Bajaj Holdings & Investment are at an advanced stage, negotiations with Blackstone are at initial stages, said the source.

Both Chrys Capital and Bajaj Holdings & Investment are considering picking up to 5 percent stake in the bank, said the sources, adding they may look at a partial equity and partial warrants structure which will allow them to dilute part of their stake at a potentially higher share price in future.

An individual entity/institution is not allowed to hold more than 10 percent stake in a bank, as per Reserve Bank of India’s norms on shareholding in private banks. Further, an investment of over 5 percent in a bank also requires RBI’s prior approval.

If a deal does fructify, the potential suitor, or suitors may cap their stake at 5 percent, as per the people quoted above.

The board of RBL Bank approved share sale plan to raise up to Rs 3,500 crores earlier this year. RBL Bank's Capital Adequacy Ratio stood at 12.3 percent (incl interim profits) as of Q2 FY20 compared to 13.7 percent the year ago.

When contacted for a comment on the story, RBL Bank told CNBC-TV18, “The query is speculative in nature and as a matter of policy, we will not comment on it”.

CNBC-TV18 is awaiting responses from Chrys Capital, Blackstone and Bajaj Holdings & Investment on story
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