The offer price of Rs 280 per share will be paid entirely in cash and the transaction will be executed in accordance with Indian regulatory requirements.
The open offer follows RBL Bank’s earlier announcement of a strategic investment by Emirates NBD, under which the Dubai-based lender will acquire a 60% stake in the Indian bank for Rs 26,853 crore, or about $3 billion.
The preferential issue involves allotment of 96 crore new shares at Rs 280 per share and has already been approved by the bank’s board. Once both transactions are completed, Emirates NBD’s total investment could exceed Rs 38,000 crore, making this one of the most significant deals in the history of the Indian financial services sector.
The transaction reaches several milestones. It is the largest ever foreign direct investment in the Indian financial services sector, the largest equity capital raised by an Indian bank, and the first example of a foreign bank acquiring a controlling stake in a profitable private lender.
Upon completion, Emirates NBD will become the promoter of RBL Bank and will have the right to nominate directors to the board. Both institutions have also agreed to merge Emirates NBD’s India branches with RBL Bank, subject to approval by the Reserve Bank of India. For RBL Bank, the capital injection will strengthen the balance sheet. The bank’s net assets are expected to rise from around Rs 15,000 crore to nearly Rs 42,000 crore, improving capital adequacy ratios and credit ratings. The additional capital will reduce financing costs, support the expansion of the branch network and accelerate investments in digital banking initiatives. The deal also positions RBL Bank as a stronger mid-market private lender, with the backing of a globally established financial group.
Emirates NBD described the investment as a long-term strategic bet in India’s fast-growing financial sector. The group said the move strengthens India’s importance within the India-Middle East-Europe economic corridor and shows confidence in the country’s economic prospects.
The integration of Emirates NBD’s international expertise and capital strength with RBL Bank’s domestic reach is expected to create a diversified platform for future growth.
RBL Bank Chairman Chandan Sinha called the deal a defining moment in the bank’s transformation journey. “This partnership with Emirates NBD marks a new era of growth and stability for RBL Bank. The capital infusion gives us the strength to accelerate expansion and leverage technology to better serve customers,” he had said earlier.
The transaction requires approval from the RBI, Competition Commission and other regulatory authorities. Once approved, it will be the first time that a foreign bank will acquire a majority stake in a private Indian bank under current FDI norms.
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