Mumbai: Hinduja Group’s IndusInd Bank is expected to get a capital boost from promoters after a successful rights issue in which they have raised Rs 2,021.45 crore.
The rights issue was necessitated to infuse residual capital into the bank in lieu of conversion of warrants issued to them in 2019 worth over Rs 2,695 crore into equity.
In the just-concluded rights issue by one of the promoters, lnduslnd International Holdings Ltd (IIHL), the latter has paid a significant premium over the prevailing market price at Rs 1,709 apiece to redeem 75 per cent warrants.
The bank’s shares on Wednesday touched an intra-day high of Rs 1,085 apiece before closing 2.46 per cent down to Rs 1,032.60 apiece on the BSE.
This also reaffirms the promoter group’s unstinted support to the lender. IIHL has completed its capital raise through its rights issue, which was oversubscribed.
“This reiterates the confidence of IIHL’s global shareholders, spread across 34 countries, in the decision of IIHL and its subsidiary, IndusInd Ltd, to redeem the balance of 75 per cent 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 crore,”IIHL said in late night release on Tuesday.