RBL Bank announced on December 26 that it has fully divested its 8.16% equity stake in DAM Capital Advisors through an Offer for Sale (OFS) during DAM Capital’s recent IPO. The sale fetched the bank Rs 163.32 crore, excluding taxes. Following this transaction, RBL Bank no longer holds any equity in the investment banking firm.
The corporate action was consummated a day ahead of the listing of shares of DAM Capital on the bourse. In a related exchange filing, RBL Bank said it has sold its entire holding comprising 57.71 lakh equity shares of face value of Rs 2 each, which accounts for 8.16% of the total issued and paid-up equity capital of DAM Capital.
This was not the first sale of the DAM Capital shares by RBL Bank. The lender had, earlier sold 10,60,000 shares or 1.50 percent stake in the secondary market. Since this earlier transaction was below the threshold limits for disclosure under the SEBI regulations, it was reported then.
The Rs 840-crore IPO of DAM Capital, which closed on December 23, has sailed through with an overall subscription of 81.88 times. The issue has passed mainly because of heavy lifting provided by Qualified Institutional Buyers (QIBs) at 166.33 times. Non-institutional investors, the other major set of subscribers after QIBs, saw their reserved portion subscribed 98.47 times.
The successful divestment has been a wellthought-out decision on the part of RBL Bank by exiting its investment in DAM Capital at a time when demand was robust in the IPO.
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Source: Moneycontrol
News Desk
