BlackRock group, the worlds largest asset manager with $5.97-trillion under management, has bought an undisclosed stake in RBL Bank from private equity fund Gaja Capital in block deals executed over three days this month.The deals executed over March 15, 22 and 26 in small quantities reduced Gajas stake to below 1 per cent from 1.41 per cent at the end of December, said a person with direct knowledge of these transactions.
This is the second such sale initiated by Gaja in the private sector bank after it last sold some shares in June last year.Gaja Capital managing director Gopal Jain confirmed that the fund has reduced its stake in the bank, but did not give any details.
The fund was an anchor investor in the bank and had invested in RBL in three tranches starting 2011, owning close to 5 per cent of the banks stock at the peak.There has been considerable interest in the banks performance from foreign investors after it was included in the London-based FTSE emerging market mid-cap index earlier this month.
Besides BlackRock, the Vanguard group has also bought more than 1 crore shares through a bulk deal as a lot of exchange traded fund (ETF) linked money from developed markets can now invest in this bank, said a person familiar with the deal.Vanguard bought shares at Rs 648.49 per share from among other Integrated Core Strategies, the Mauritius arm of a global investment management firm, bulk data from the NSE show.Gaja made close to 9 times returns on its investments by selling its stake in the price range of Rs 645-Rs 650, making it a multi-bagger for the private equity company.
Besides BlackRock, domestic mutual fund LT also bought shares from the block deal with Gaja.
The private equity fund has invested through a foreign fund called GPE (India) Ltd and another domestic venture capital fund.The demand from large funds was reflected in the stocks performance on Tuesday as the shares touched a high of Rs 657 before closing the day at Rs 653.5, up 2.53 per cent from Mondays close of Rs 636.75 per share.
The bank has been one of the best performing ones in the index as the stock has jumped 41 per cent from Rs 465 per share a year ago.