RBL Bank Shares Fall After 30% Jump In Three Days

RBL Bank's shares fell after gaining 30% over the previous three sessions.
<div class="paragraphs"><p>A RBL Bank branch in Mumbai. (Photo: Vijay Sartape/BQ Prime)</p></div>
A RBL Bank branch in Mumbai. (Photo: Vijay Sartape/BQ Prime)

Shares of RBL Bank Ltd. fell after surging nearly 30% in three days amid a volatile session.

The stock lost as much as 7% after gaining 4.5% intraday. It closed nearly 3% lower on Friday.

The trading volume was more than quadruple the 30-day average, when markets closed. The Relative Strength Index was 75, suggesting the stock may be overbought.

  • On Aug. 19, RBL Bank brought down its shareholding in Kilburn Engineering by selling an additional 2.92% through the exchanges. The bank had acquired 67,50,000 shares of Kilburn Engineering under a debt recast plan in February 2021 with a lock-in period of one year.

  • RBL Bank offloaded shares between May 17 and Aug. 19 at market price. The total consideration for sale of 61,00,000 shares was Rs 27.08 crore. RBL Bank held 1.89% of share capital of Kilburn after the sale.

  • On Aug. 22, RBL Bank said it has approved raising of Rs 3,000 crore to fund growth. The fundraise will be subject to shareholders' approval. The board also approved issuance of 1.75 crore fresh equity options exercisable into equal number of shares of Rs 10 each, in addition to options which remain ungranted under ESOP 2018. Two directors Gopal Jain and Sivakumar Gopalan have been approved to be appointed as directors of the company.

  • On Aug. 24, U.S.-based College Retirement Equity Fund bought 4.6 million shares of the lender, according to data released by the BSE.

Of the 22 analysts tracking the lender, 12 maintain a 'buy', three suggest a 'hold' and seven recommend a 'sell', according to Bloomberg data. The 12-month consensus price target implies a downside of 6.4%.


Bharath R is a senior website producer at BQ Prime. He ...more
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