Hindujas get another extension to subscribe to IndusInd Bank warrants

New deadline set at Feb 4, 2021, by which time Hindujas must bring in Rs 2,021.45 crore towards subscription

The Securities and Exchange Board of India (Sebi) has granted Hindujas more than a month, till February 04, 2021, to bring in the balance amount of Rs 2,021.45 crore to subscribe to warrants of IndusInd Bank. This amount forms 75 per cent of warrants, to be converted into the equity of the bank, of which the Hindujas are the promoters.

The Covid-19 pandemic had disrupted the business operations of entities across the world. Among the many measures to safeguard the economy, RBI also extended the loan moratorium. It in this background that the bank, on behalf of promoter entities IndusInd International Holdings Ltd and its subsidiary, had sought extension in time for payment of balance amount.

 

The promoter group held 14.68 per cent stake in bank at end of September 2020, according to a filing with BSE. IndusInd Bank stock closed flat at Rs 924.5 per share on BSE.

In July 2019, the Promoters subscribed to 25 per cent warrants aggregating to Rs 673.82 crore to reinforce the confidence in the management and strength of the Bank. They had subscribed to warrants at a price of Rs 1,709 per share, when the market price was hovering at Rs.1470 per share.

Overall capital adequacy ratio (CAR) at 16.55 per cent with Common Equity Tier 1 ratio of 15.83 per cent at the end of September 2020 (Q2FY21). Bank strengthened capital position by raising Rs 3,288 crore in equity in second quarter ended September 2020.