Marathi | HIndi

Epaper
Follow us:
Home > Business > IndusInd Bank promoters complete capital raise through rights issue
IndusInd Bank promoters complete capital raise through rights issue English.Lokmat.com

IndusInd Bank promoters complete capital raise through rights issue

lnduslnd International Holdings Ltd (IIHL), the promoter company of lnduslnd Bank, has completed its capital raise through a rights issue at an overwhelming premium of 1,400 per cent towards subscription.
IndusInd Bank promoters complete capital raise through rights issue

lnduslnd International Holdings Ltd (IIHL), the promoter company of lnduslnd Bank, has completed its capital raise through a rights issue at an overwhelming premium of 1,400 per cent towards subscription.

"This reiterates the confidence of IIHL's global shareholders spread across 34 countries in the decision of IIHL and its subsidiary IndusInd Ltd to redeem the balance 75 per cent of warrants at a price of Rs 1709 per share (a huge premium over the current market price of Rs 1,059) aggregating to Rs 2,021.45 crore," it said in a statement.

To support the redemption of warrants, IIHL has decided to monetise some of the other mature, non-core investments. The funds from this divestment and the rights issue will be remitted on or before February 18 as permitted by the Securities and Exchange Board of India (SEBI).

Earlier, 25 per cent warrants were subscribed in July 2019 on payment of Rs 673.8 crore, amounting to 25 per cent of the offer price of Rs 1,709.

"This will lead to IIHL shoring up additional equity of 1.7 per cent in lnduslnd Bank, thereby bringing promoter equity to 15 per cent on a diluted basis," said Moses Harding John, President and Chief Executive Officer.

In September 2020, IIHL had acquired 1.24 per cent of the preferential equity knowing that its balance 9.05 per cent of equity will be locked in till March 2021 per regulatory guidelines.

"The board of IIHL has always been desirous of increasing its stake in lnduslnd Bank to 26 per cent," he said adding the company is committed to enabling its investors to have trading and monetising opportunities for their long-standing holdings.

Towards this, it has raised the debt by pledging some shareholding of lnduslnd Bank for acquisition or strategic investment to convert IIHL into a listed operating entity outside India by the first week of September 2021.

( With inputs from ANI )

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

IndusInd Bank promoters complete capital raise through rights issue
Brand Opus India announces winners of Business Icon Awards 2021
India's millennials spending more responsibly; borrowed most for home repair, medical emergencies
ABB's HVAC drives technology ensures sustainable, safe ventilation of Chennai Metro
Ubi MACs kickstarts with five clients on board; to offer one-stop solution for media consultation