IndusInd Bank Promoters To Infuse Rs 2,700 Cr Via Warrants To Increase Stake

Promoters of IndusInd Bank, the Hindujas, will be infusing Rs 2,700 crore into the bank through a warrant issue to ramp up promoter holding after the merger of Bharat Financial, a PTI report said.

The merger between the bank and the micro-lender, would be effective from 4 July and is accretive from a profit, margin and return on equity perspective.

Over the phone, PTI interviewed a senior official at IndusInd Bank to find out that the promoters will infuse Rs 2,700 crore to get their stake back to 15 percent. It was further reported that a fourth of the money will come immediately after the merger, while the rest will come over the next 18 months.

The dilution of their stake to about the 13 percent levels due to the merger with micro-lender is making it possible for the promoters to subscribe to the warrants and increase their holding to 15 percent, the cap set by regulatory norms.

The report said that the promoters would be subscribing to the warrants at a steep discount of Rs 1,709 a share as against the Friday's close of Rs 1,448.70 on BSE.

In October 2017, the merger of Bharat Financial into IndusInd Bank was announced. Shareholders would get 639 shares of IndusInd Bank for every 1,000 shares of the micro-lender.

Shares of IndusInd Bank were trading higher on Monday morning, touching an intraday high of Rs 1,485.