ING Vysya Bank to raise Rs 899 cr via QIP

The bank is issuing 14.39 mn equity shares with a face value of Rs 10 each to qualified institutional buyers

Bangalore-based private lender ING Vysya Bank plans to raise Rs 899 crore under tier-I capital via a qualified institutional placement (QIP) issue. The bank secured approval for the issue at its 82nd annual general meeting (AGM), held here today. The QIP issue was also opened today.

The bank is issuing 14.39 million equity shares with a face value of Rs 10 each to qualified institutional buyers. The bank's QIP committee, which met after the AGM today, fixed the floor price at Rs 624.55 per equity share, in accordance with clause 85 of the ICDR regulations, as amended, the bank informed the National Stock Exchange. Under regulation 85 of the Securities and Exchange Board of India Regulations, the bank may offer a discount of not more than five per cent on the floor price.

Early this year, the bank had said it planned to raise up to Rs 2,000 crore to shore up its capital base. It had said it would raise the amount through a preferential issue to the promoters, along with a QIP.

The Netherlands-based ING Group holds 43 per cent stake in the bank.

ING Vysya Bank has a capital adequacy ratio of 13.2 per cent. It is eyeing credit growth of 17 per cent on its book size of Rs 34,370 crore.

For the quarter ended March, the bank reported a net profit of Rs 170.3 crore, a 33.7 per cent rise compared with Rs 127.4 crore in the year-ago period. Total income rose 15.56 per cent to Rs 1,454.15 crore, against Rs 1,258.3 crore in the corresponding period last year.

Today, the bank stock closed at Rs 606.65 on the BSE, a rise of 0.76 per cent.