IndusInd Bank promoters complete fund raising via a rights issue

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Mumbai: IndusInd Bank promoters complete fund raising via a rights issue. IndusInd International Holdings Ltd (IIHL), the promoter company of IndusInd Bank has completed raising capital through its rights issue which was oversubscribed, the bank said in a regulatory filing.
IndusInd Bank promoters complete fundraising via a rights issue.IIHL raised capital at an overwhelming premium of 1400 percent towards the subscription of this rights issue, it said.

This reiterates the confidence of IIHL’s global shareholders, spread across 34 countries, in the decision of IIHL and its subsidiary, IndusInd Limited, to redeem the balance of 75 percent of the warrants at the price of Rs 1,709 per share (a huge premium over the current market price of Rs 1,059), aggregating to Rs 2,021.45 crores,” it said.

Additionally, to support the redemption of warrants, IIHL has decided to monetize 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, as permitted by SEBI.
Earlier 25 percent warrants were subscribed to in July 2019 on payment of Rs 673.8 crore, amounting to 25 percent of the offer price of Rs 1,709.

The filing said that this would lead to IIHL shoring up additional equity of 1.7 percent in IndusInd Bank thereby bringing promoter equity to 15 percent on a diluted basis.

–IANS

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