The shares of RBL Bank jumped more than 9 percent on October 20 after Emirates NBD announced plan to acquire a majority stake in the listed domestic private sector lender.

The shares of the company hit a fresh 52-week high of Rs 327.40 apiece today.

Earlier on October 18, Emirates NBD Bank and RBL Bank approved the plan to enter into definitive agreements for the banking giant from the Middle East to acquire a controlling stake in the Indian private lender through a primary infusion of approximately $3 billion (approximately Rs 26,850 crore).

The proposed investment will be made via a preferential issue of up to 60 percent, and will be subject to regulatory approvals and other customary closing conditions. As part of this transaction, ENBD will also make a mandatory open offer for the purchase of up to 26 percent stake from the public shareholders of RBL Bank, in accordance with SEBI's Takeover Regulations.

The Board of Directors of ENBD and RBL Bank also approved the amalgamation of the India branches of ENBD with and into RBL Bank as required by RBI guidelines. This amalgamation is expected to be completed after the execution of the preferential issuance into RBL Bank.

Analysts at CLSA called it a "landmark deal" for a financial services company in India, noting that benefits from the investment will be seen in the long term. The stake buy, which will also trigger an open offer for additional RBL shares, is the beginning of a new chapter for the Indian private lender, Citi analysts said.

The substantial influx of "confidence capital" significantly enhances medium-to-long term growth visibility for RBL Bank, they said.