Diwali Buzz: Will RBL shares breakout and touch higher highs after Emirates NBD deal?

On the day of Diwali, 20^th October, 2025, RBL Bank’s shares are up by 7.92%, trading at Rs 325.10. This, after it was confirmed that Emirates NBD will acquire up to 60% stake in RBL Bank. The talks about the deal were going on for some time. Nifty 50 is up by 0.75% at this time. Nifty Bank Index is up by 0.89% at this time. Nifty Private Bank index is up by 0.91%.

Emirates NBD to acquire 60% stake for Rs 26,850 crore

Emirates NBD is the second largest bank of UAE. It will acquire 60% stake in RBL Bank for $3 billion or Rs 26,850 crore. The acquisition will be made through issuance of shares and warrants of RBL to Emirates NBD. Emirates will also make an open offer of additional 26% stake, as per regulatory requirement. This open offer will be made at Rs 280 per share, the price at which Emirates NBD is acquiring the 60% stake in RBL.

Due to this acquisition RBL bank’s capital base will become very strong. It will have more capital for business expansion. Its pace of growth may therefore go up in the medium and long term. This may give a boost to its stock price.

Stock price near 52-week high

Currently, the 52-week high price of the stock is Rs 327.40. Its 52-week low price is Rs 146.10. The current price is very near to its 52-week high price. 12-months trailing price-to-earnings (P/E) ratio at which the stock is currently trading is 34.24. Nifty Private Bank index is currently trading at a P/E ratio of around 19. Nifty Bank index is trading at a P/E ratio of around 16. So RBL’s shares are priced higher at many of its banking peers.

But a significant part of the gains in the price of RBL stock this year have come in the last one month, when reports of Emirates NBD looking to acquire a stake in RBL, first came. The stock has gained 20.45% in the past 1 month. These gains have pushed up the P/E ratio at which it is trading. This also increases the probability that RBI stock may see a breakout in the near and medium term and touch higher 52-week high. But the high P/E ratio at which the stock is currently trading may limit this probability of a new breakout.

RBL shares have gained 105.86% in 2025

Year-to-date in 2025, RBL shares have gained 105.86%. Nifty 50 index has gained 9.03% in this period. RBL shares have outperformed the Nifty 50 index by more than 90% in 2025. Nifty Bank Index has gained 14.04% in this period. RBL stock has also outperformed the benchmark Nifty 50 index by more than 80% in 2025.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: NSE, RBL