RBL Bank Divests Entire 8.16% Stake in DAM Capital Advisors Through IPO Offer for Sale

RBL Bank has officially divested its entire 8.16% stake in DAM Capital Advisors through an Offer for Sale (OFS) during the latter’s Initial Public Offering (IPO). The IPO was open from December 19 to December 23, 2024. The sale, disclosed in an exchange filing, amounted to ₹163.32 crore.

The transaction involved the sale of 57.71 lakh equity shares with a face value of ₹2 each. Following this move, RBL Bank no longer holds any equity stake in DAM Capital Advisors.

A Gradual Exit Strategy

This recent transaction marks RBL Bank’s complete exit from DAM Capital Advisors. Earlier this year, the bank had sold 10.60 lakh shares, representing a 1.50% stake, in a secondary market deal. The earlier transaction, however, did not cross SEBI’s disclosure threshold, making this IPO divestment the final step in RBL Bank’s disinvestment strategy.

DAM Capital’s IPO Attracts High Demand

DAM Capital Advisors’ ₹840-crore IPO received an overwhelming response from investors. It closed on December 23, 2024, with a total subscription of 81.88 times. Qualified Institutional Buyers (QIBs) led the demand, subscribing 166.33 times their allocated quota, while Non-Institutional Investors (NIIs) subscribed 98.47 times their reserved portion.

The IPO comprised an OFS of 2.96 crore equity shares, including contributions from promoters and existing investors. Ahead of the issue, DAM Capital raised ₹251.48 crore through its anchor book on December 18, 2024. The IPO price band was set at ₹269-283 per share.

Listing Date and Market Performance

Shares of DAM Capital Advisors made debut on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Friday, December 27, 2024. The share price of DAM Capital Advisors opened at ₹393 on NSE. 

Meanwhile, RBL Bank’s share price witnessed fluctuations. On December 27, 2024, the stock made an intraday high of ₹164.30 on NSE. However, by 2:54 PM, it was trading lower at ₹159.25. 

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