IndusInd Bank drops after board approves preferential issue to promoters

IndusInd Bank fell 1.32% to Rs 784.80 at 10:10 IST on BSE after the board of directors of the bank have approved preferential allotment of shares to promoters of the bank.

The bank made announcement after market hours yesterday, 11 June 2015.

Meanwhile, the S&P BSE Sensex was up 29.14 points, or 0.11%, to 26,400.12.

On BSE, so far 19,794 shares were traded in the counter, compared with an average volume of 1.13 lakh shares in the past one quarter.

The stock hit a high of Rs 795 and a low of Rs 784.45 so far during the day. The stock hit a record high of Rs 966.90 on 15 April 2015. The stock hit a 52-week low of Rs 521.35 on 16 June 2014.

The stock had outperformed the market over the past one month till 11 June 2015, falling 3.01% compared with 4.13% decline in the Sensex. The scrip had, however, underperformed the market in past one quarter, declining 10.63% as against Sensex's 7.98% fall.

The large-cap private sector bank has an equity capital of Rs 531.19 crore. Face value per share is Rs 10.

IndusInd Bank said that the board of directors of the bank, at their meeting held on 11 June 2015, have approved preferential allotment of shares to promoters of the bank up to 1.5% of the authorised share capital of the bank of Rs 600 crore, so that post any other issue of equity shares that the bank may do pursuant to the shareholders approval and the preferential allotment, the aggregate holding of the promoters i.e. Indusind International Holdings (IIHL) and its subsidiary is retained at 15%. The board has proposed to seek approval of the Reserve Bank of India and shareholders of the bank for the same. This decision by the board was taken pursuant to the approval by the shareholders through postal ballot on 8 June 2015, for issuing shares up to 10% of the Authorised share capital of the bank.

The board of directors of the bank have authorised Finance Committee of Board / Managing Director and/or Company Secretary and / or Chief Financial Officer on behalf of the board to finalise the notice to shareholders and explanatory statement for obtaining consent of the members of the bank to the preferential allotment and to do all such acts, deeds, matters and things as may at its sole and absolute discretion deem fit, necessary, desirable incidental or expedient for such purpose, to give effect to this resolution.

IIHL held 11.41% stake in the bank as per the shareholding pattern as on 31 March 2015.

IndusInd Bank's net profit rose 25.1% to Rs 495.27 crore on 19.8% rise in total income to Rs 3237.43 crore in Q4 March 2015 over Q4 March 2014.

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