Wednesday, 29 July 2020

IndusInd Bank’s Board Approves Fresh

IndusInd Bank’s Board Approves Fresh Capital Raise of Rs. 3,288 crore Through Preferential Issuance of Equity
Board of Directors of IndusInd Bank Limited (“Bank”), in their meeting held today, considered and approved a proposal to raise Rs. 3,288 crore through a preferential issue of fully paid up 6.275 crore equity shares at a price of Rs 524/- per share, to a set of marquee investors and the Promoter. The preferential issue is subject to shareholder approval and other necessary approvals. The extraordinary general meeting (“EGM”) of shareholders, to consider the preferential issue, is scheduled to be held on 25 August 2020.
The Bank will raise capital from the following investors:
Name of Investor
Number of Shares Proposed to be Issued
Total Capital Proposed to be Raised (Rs. Crore)
Route One Fund I LP
71,59,788
375
Route One Offshore Master Fund LP
1,06,93,264
560
ICICI Prudential Life Insurance Company Limited
1,62,21,374
850
Tata Investment Corporation Limited
57,25,190
300
AIA Company Limited
78,30,152
410
Hinduja Capital Limited
57,03,816
299
IndusInd International Holdings Limited
94,13,661
493
Total
6,27,47,245
3,288
The Bank is already well capitalized with a CRAR (including Q1 FY21 profits) of 15.3% as of 30th June 2020. Subsequent to the proposed capital raise, the post-issue CRAR is estimated to be 16.5%.
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 whilst ensuring sustainable financial parameters.
Mr. Sumant Kathpalia, Managing Director and CEO, IndusInd Bank Limited, said. “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 Bank’s balance sheet and position the Bank well as the economy gradually navigates out of the Covid-19 pandemic. The capital raise also reflects the continued support and confidence that our Promoters have in the Bank. We recognize and value the trust and confidence being placed on us by our shareholders, depositors, customers and rating agencies and are committed to remaining focused on creating value for all our stakeholders.”
In accordance with SEBI ICDR Regulations, the proposed preferential issue shall be completed within a period of 15 days from the date of approval by the shareholders at the EGM.
Morgan Stanley and Citigroup Global Markets India Private Limited acted as financial advisors, and S&R Associates acted as legal counsel to IndusInd Bank Limited.

No comments:

Post a comment