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IndusInd Bank said it has raised ₹2,021 crore of common equity capital through conversion of preferential warrants issued to the promoter entities – IndusInd International Holdings Limited (IIHL) and IndusInd Limited (IL).
“The warrants were issued as an integral part of the merger with Bharat Financial Inclusion Limited in July 2019,” it said in a statement.
The promoter entities had paid ₹673 crore at the time of subscription to the warrants and the balance amount of ₹2021 crore was paid on Thursday.
The finance committee of the bank on Thursday approved allotment of 1.57 crore shares to the promoter entities. “The warrants are converted at a price of ₹1,709 per share reflecting a premium of 65 per cent over the closing price on February 17, 2021,” the bank said.
The Capital Adequacy Ratio of the bank will be further augmented to about 17.68 per cent with this capital raise. It stood at 16.93 per cent as of December 31, 2020 including the profits for the nine months of the current fiscal.
“With this capital raise and continued economic recovery, the bank is well positioned to execute our strategy of ‘Scale with Sustainability’,” said Sumant Kathpalia, Managing Director and CEO of IndusInd Bank.
Together with the current warrants conversion, the bank has raised ₹5,309 crore of equity capital during the current fiscal.
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