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IndusInd Bank Promoters Complete Raising Capital via Rights Issue

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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.

IndusInd Bank Promoters Complete Raising Capital via Rights Issue
IndusInd Bank: Quotes, News
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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.

GoodReturns.in

Read more about: indusind bank rights issue
Story first published: Wednesday, February 17, 2021, 12:33 [IST]
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