Among the other investors are FLC Investco, Kotak Mahindra Life Insurance and ICICI Prudential Life Insurance.
The bank received applications from new investors for about 450 million fully paid up equity shares, covering two-third of the issue, as the promoter Utkarsh CoreInvest renounced its right issue entitlement.
The development led to a surge in investor interest on the bank with its share price rallying nearly 20% on the BSE. The stock eventually settled at Rs 21.51 on the exchange, up 17.61% over the previous close.
India Capital Fund and WhiteOak Capital are also listed among the 38 entities that made applications on the opening day of the rights issue.
Cohesion MK Best Ideas Sub-Trust applied for over 5.71 crore shares, the largest interest shown by any investor. This would translate into a little over 3% holding in the bank if the rights issue of about 68 crore equity shares is fully-subscribed.The price of the issue was fixed at Rs 14 per share.The Singularity Holdings along with two other group funds applied for 5.68 crore shares of face value Rs 10. Kotak Mahindra Life Insurance applied for over 4.21 crore shares, ICICI Prudential Life Insurance applied for 3.57 crore shares and HDFC Life Insurance applied for about 1.47 crore shares of .
The entire issue price will be payable at the time of making the application. The issue will close on November 3.
At present, Utkarsh CoreInvest holds 68.92% while 13.14% are with institutional investors. The balance 17.94% is held by the small investors.
Meanwhile, RBL Bank last week said that it received regulatory permission to make fresh investment in Utkarsh Small Finance Bank via the latter’s rights issue. RBL Bank did not hold any share in Utkarsh SFB directly till the end of September while it owns 8.64% in Utkarsh CoreInvest.
Utkarsh, which has been under stress financially, is in the process of a reverse merger with its promoter. Its gross non-performing assets ratio stood at 11.4% at the end of June as compared with 2.8% a year back. The carry-forward stress translated into a net loss of Rs 239 crore for the first quarter of the fiscal.
About 55% of the bank’s total portfolio of Rs 19,224 crore is unsecured loans.