Tatas buy 4.6% stake in DCB

The Tata group has acquired a 4.60 per cent stake in private sector Development Credit Bank Ltd (DCB), its first major investment in the banking sector.

The Tata investment is part of the Rs 310 crore preferential issue by DCB to a group of investors at a price of Rs 105 per equity share of Rs 10 each, aggregating up to 16.60 per cent of the post-issue share capital of the bank. Apart from Tata Capital, Al Bateen Investment Co LLC of the UAE, GRA Finance Corporation Ltd, Mauritius, DCB Investments Ltd, Mauritius and India Capital Opportunities 1 Ltd, Mauritius will be acquiring stake in the bank. The preferential offer must be approved by shareholders and the RBI. Tata Capital — formed recently by Tata Sons, the holding company of the Tata Group, to enter new segments in financial services — made the acquisition.