IndusInd International Holdings Ltd (IIHL), the promoter of IndusInd Bank, has finished raising capital through its oversubscribed rights issue, the bank said in a regulatory filing. IIHL raised funds at a huge premium of 1400% for the subscription of the rights issue.
This reaffirms the trust of the global shareholders of IIHL, spread over 34 countries, in the decision of I IH Property, its subsidiary, Indus Ind Limited, to redeem the balance of 75% of the warrants at the price of Rs 1709/-per share, a big premium over the current share. The market price of Rs 1059, is aggregated to Rs 2021.45 crores.
In addition, in order to facilitate the redemption of warrants, IIHL agreed to monetize some of the other mature, non-core portfolios.
The funds from this divestment and the Question of Rights shall be remitted on or before 18 February 21, as approved by SEBI. Earlier 25% of the warrants were signed in July 2019 for payment of Rs. 673.8 crores, reflecting 25% of the bid price of Rs. 1709.
"This would lead to IIHL shoring up additional equity of 1.7% in IndusInd Bank thereby bringing Promoter Equity t o 15% on a diluted basis. IIHL places on record its appreciation to its global shareholders who have always stood by the company for the last 26 years," the bank in a filing.
In order to help the bank, IIHL also participated and secured 1.24% of the preferential equity on September 20, understanding that its balance of 9.05% of the equity would be locked in by March 21 by regulatory guidelines.