IndusInd Bank Extends Gains For Second Day On Additional Stake Purchase By Route One Hedge Fund

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.

IndusInd Bank Extends Gains For Second Day On Additional Stake Purchase By Route

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.

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