Mumbai, Dec. 7: BNP Paribas, the French banking and financial group, is picking up a 4.17 per cent stake in the Bank of Rajasthan (BoR). BNP and three other investors will together acquire a little over 14 per cent in the private bank for Rs 472 crore.

At a board meeting held today, the directors of BoR decided to issue equity shares and warrants on a preferential basis to four investors, subject to the approval of shareholders. The four investors include Glasia Mauritius II Ltd (or Avenue Capital Group), which will acquire 65 lakh shares at a price of Rs 200 per share. BNP Paribas will get 70 lakh shares at the same price.

Two local investors — Shree Naman Developers and Darashaw & Company Ltd — are being offered the warrants at Rs 202 apiece. Shree Naman Developers will get 35 lakh warrants while Darashaw has been offered 65 lakh warrants.

Darashaw is a brokerage and an investment banking house while Shree Naman Developers is a real estate developer which has projects in Mumbai.

After conversion, Avenue Capital Group will get a 3.33 per cent stake in the bank, Shree Naman will hold 2.08 per cent and Darashaw 3.88 per cent.

Deepak Saruparia, deputy managing director of the BoR, said there were three objectives of issuing these shares: raising the bank’s capital base, increasing business and reducing the promoter’s stake.

The promoter’s holding now stands at 44 per cent. It will go down to 33 per cent when the warrants are converted into shares. It may be recalled that the Reserve Bank of India (RBI) has been asking the promoters of BoR — the Tayals — to bring down their stake.

Saruparia said all the entities were coming in as investors and would not have any board representation.