Money & Banking

IndusInd Bank promoters complete capital raise

Our Bureau Mumbai | Updated on February 17, 2021

IIHL plans to list itself outside India by first week of September

lnduslnd International Holdings Ltd (IIHL), the promoter company of lnduslnd Bank, said it has completed its capital-raise through a rights issue, which was oversubscribed.

“IIHL raised capital at an overwhelming premium of 1,400 per cent towards the subscription of this rights issue,” it said in a statement. This reiterates the confidence of IIHL's global shareholders in the decision of IIHL and its subsidiary, IndusInd Limited, to redeem the balance of 75 per cent of the warrants at the price of ₹1,709 per share, amounting to ₹2,021.45 crore, the statement added.

Further, to support the redemption of warrants, IIHL has decided to monetise some of the other mature, non-core investments.

The funds from this divestment and the rights issue will be remitted on or before February 18, it said.

Previously in July 2019, 25 per cent of the warrants were subscribed on payment of ₹ 673.8 crore.

“This would lead to IIHL shoring up additional equity of 1.7 per cent in lnduslnd Bank, thereby bringing promoter equity to 15 per cent on a diluted basis,” it said.

The Board of IIHL has always been desirous of increasing its stake in lnduslnd Bank to 26 per cent, the statement further said.

“Towards this, it has raised the debt by pledging some shareholding of lnduslnd Bank for acquisition or strategic investment to convert IIHL into a listed operating entity outside India by the first week of September 2021,” it said.

Meanwhile, according to a regulatory filing on February 16, the promoters of IndusInd Bank have pledged 4.27 crore shares, amounting to 5.6 per cent stake, with Catalyst Trusteeship Ltd.

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Published on February 17, 2021
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