New Delhi: Private sector IndusInd Bank on Friday said it has raised Rs 3,288 crore through preferential allotment of shares to the promoter group and select investors. At the bank’s extraordinary general meeting on August 25, it had received shareholders nod for issuance of over 1.51 crore equity shares on preferential basis to non-qualified institutional buyers (non-QIBs) for Rs 792 crore and over 4.76 crore shares to a set of five qualified institutional buyers for Rs 2,496 crore.
The Finance Committee of the Board of Directors of the bank at its meeting held on September 4, 2020, approved the allotment of 1,51,17,477 equity shares at a price of Rs 524 per unit, on preferential basis, for aggregate consideration of Rs 792.16 crore to IndusInd International Holdings Ltd (non-QIB promoter) and Hinduja Capital Ltd (non-QIB non-promoter), IndusInd Bank said in a regulatory filing. Whereas IndusInd International Holdings has been allotted 94,13,661 shares (for Rs 493 crore), Hinduja Capital Limited has received 57,03,816 shares (Rs 299 crore).
Earlier on September 2, the Finance Committee had approved allotment of 4,76,29,768 shares at a price of Rs 524 per piece on preferential basis to five QIBs for an aggregate consideration of Rs 2,495.80 crore. Under this, ICICI Prudential Life Insurance Company has been allotted 1,62,21,374 equity shares (Rs 850 crore); Route One Offshore Master Fund, LP has received 1,06,93,264 shares (Rs 560 crore) and AIA Company Ltd 78,30,152 shares (Rs 410 crore).
Route One Fund I, LP has received 71,59,788 shares (Rs 375 crore) and Tata Investment Corporation Ltd has been allotted 57,25,190 equity shares (for Rs 300 crore) of the bank. “Post the allotment of equity shares to non-QIBs today, the bank has completed the preferential issue to QIBs and non-QIBs, of 6,27,47,245 equity shares for an aggregate consideration of Rs 3,287.96 crore, as approved by the shareholders at this meeting held on August 25, 2020,” IndusInd Bank said.
The fund raised through the preferential allotment of shares in the Hinduja group-promoted IndusInd Bank is the first in last four years. The bank will use this capital to continue to invest in liabilities and asset franchise, technology and infrastructure platforms, to expand reach, product offerings and to improve customer experience, while ensuring sustainable financial parameters, its managing director and chief executive Sumant Kathpalia had said in late July.
“We thank our existing shareholders for their continued trust and support and welcome our new shareholders. This capital raise from long-term, foreign as well as domestic investors, is strategic for us as this helps us bolster the balance-sheet and position of the bank well, as the economy gradually navigates out of the pandemic,” Kathpalia said in a post earnings concall for Q1FY21 on July 28. IndusInd Bank shares closed 2.44 per cent down at Rs 615.70 apiece on the BSE.
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