IndusInd Bank raises Rs 2,000 cr via QIP

Private sector lender IndusInd Bank on Tuesday closed its qualified institutional placement (QIP) issue by raising Rs 2,000 crore ($369.1 million).

The Mumbai-based lender issued 52.1 million new shares, comprising 9.98 per cent of its post-issue share capital to investors at a price of Rs 384 a share. The QIP issue was launched on November 26.

The transaction was done at a 2.7 per cent premium to the floor price of Rs 374.05, under applicable Securities and Exchange Board of India (Sebi) guidelines.

Shares of IndusInd Bank closed at Rs 411.90, down Rs 5.3, or 1.27 per cent on the Bombay Stock Exchange.

“The QIP issue received a response from FIIs (foreign institutional investors) as well as domestic investors,” IndusInd Bank said. The funds raised will be used to support its growth and augment its capital adequacy ratio (CAR).

Romesh Sobti, managing director & CEO, IndusInd Bank said, “Although the bank is already well capitalised, this equity raising will ensure its growth continues apace.”

A bank official said, “The QIP issue was done in view of giving the bank more comfort in tier-I capital, which was 9.93 per cent at end September”

The bank reported 30 per cent rise in net profit at Rs 250 crore. CAR was 12.85 per cent in end-September.

Morgan Stanley, JM Financial, CLSA India and HSBC Securities were the joint global coordinators and book running lead managers to the issue.

Post QIP issue, the promoter share holding in the bank will come down to 17.44 per cent which was 19.38 per cent end September. RBI has mandated private sector banks to bring down promoter shareholding to 10 per cent.

This was the third time that IndusInd Bank raised capital through the QIP route.