IndusInd Bank to raise Rs 2,496 cr via preferential equity shares

Private sector IndusInd Bank on Wednesday said it has approved allotment of preferential shares to marquee investors to raise Rs 2,495.79 crore. The Finance Committee of the board of directors at its meeting held on September 2, 2020, approved allotment of 4,76,29,768 equity shares of the face value of Rs 10 each at a price of Rs 524 per share on a preferential basis, for an aggregate consideration of Rs 24,95,79,98,432.

The allottees to the bank’s shares are: Route One Offshore Master Fund, LP (1,06,93,264); Route One Fund I, LP (71,59,788); ICICI Prudential Life Insurance Company Ltd (1,62,21,374); Tata Investment Corporation Ltd (57,25,190) and AIA Company Ltd (78,30,152). ”Consequently, the issued, subscribed and paid-up equity share capital of the bank stands increased from the present level of Rs 6,93,56,60,380 (divided into 69,35,66,038 equity shares of face value of Rs 10 each) to Rs 7,41,19,58,060 ( divided into 74,11,95,806 equity shares of face value of Rs 10 each),” the bank said.

The allotment is part of the bank’s resolution passed by shareholders in the extraordinary general meeting on August 25, 2020, for issuance of preferential equity shares to qualified institutional buyers (QIBs) and the promoters. In July, the board of directors of the bank had cleared the proposal for Rs 3,288 crore capital raise from these marquee investors and the promoter group.