Shares in Hinduja Group backed lender IndusInd Bank extended gains for the second day to Rs. 549.75 per share on the NSE, rising over 10% in two sessions. On Tuesday, the stock of private sector lender closed with gains of over 6% at Rs. 526.30 per share.
As per reports, US based hedge fund entity Route One Investment Company is currently undergoing talks with the bank for increasing its stake. This is at a time when the lender is considering different ways for raising capital to bolster its balance sheet.
"Route One Investment Company currently holds a 5.41 percent stake in IndusInd Bank through two entities. The plan is to hike it to around 9.9 percent via a preferential allotment of shares. But a final call is yet to be taken by the bank's board," an individual privy to the proposed deal told a leading online business portal.
There could be more investor participants joining Route One in what could be a larger fund raising initiative via the preferential allotment mode. As part of which the bank could divest an overall stake of 10% , the source added. Based on the current market capitalisation of IndusInd Bank, a 10 percent stake is valued at nearly Rs 3,650 crore.
At 9:30 am, the stock of IndusInd Bank traded higher by 4.04% or Rs. 21.25 at Rs. 547.55 per share on the NSE.