IndusInd Bank extends gain on successful QIB issue

The bank will apply the net proceeds primarily to enhance capital adequacy ratio and to increase capacity to lend.

IndusInd Bank is trading higher by 1.2% at Rs 426 extending its past one week rally after the private lender has successfully raised Rs 2,000 crore by issuing shares to qualified institutional buyers (QIB).

“The finance committee of the board of directors has approved the issuance of 52.10 million equity shares at a price of Rs 384 per equity share (including a premium of’ Rs 374 per equity share), aggregating to Rs 2,001 crore to QIBs,” IndusInd Bank said in a filing.

“The bank will apply the net proceeds primarily to enhance capital adequacy ratio, to increase capacity to lend and for general corporate purposes,” the bank said in a preliminary placement document filed with the stock exchanges.

The stock has outperformed the market by gaining 11% in past one week compared to 4.3% rise in benchmark Sensex. A combined 225,055 shares have changed hands on the counter so far on the BSE and NSE.