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IndusInd Bank gets Rs 2,021 crore capital boost from promoters

The firm has received Rs 2,021 crore equity from the promoters after the conversion of preferential warrants into equity shares

Topics
IndusInd Bank | Banking sector | Indian Banks

Press Trust of India  |  New Delhi 

indusind bank
IndusInd Bank

Hinduja Group's has received Rs 2,021 crore equity from the promoters after the conversion of preferential warrants into equity shares.

"The warrants were issued as an integral part of the merger with Bharat Financial Inclusion Limited in July 2019. The Promoter entities had paid Rs 673 crore at the time of subscription to the warrants and the balance amount of Rs 2,021 crore was paid today," said in a BSE filing.

The two promoter entities are IndusInd International Holdings Limited (IIHL) and IndusInd Limited (IL).

The Finance Committee of the Bank on Thursday approved allotment of 1,57,70,985 shares to the promoter entities. The warrants are converted at a price of Rs 1,709 per share reflecting a premium of 65 per cent over the closing price on Wednesday.

The private sector lender had issued convertible warrants to IIHL and its subsidiary IL on July 6, 2019, for a total amount of Rs 2,695.26 crore against 1,57,70,985 warrants.

While they paid Rs 673.82 crore towards 25 per cent of the warrant subscription at a price of Rs 1,709 per piece, the rest of Rs 2,021.44 crore was to be paid on January 5, 2021, for conversion of remaining 75 per cent warrants into equity shares.

The bank's capital adequacy ratios got further boost with this infusion, said.

"The Capital Adequacy Ratio including 9MFY21(April-December) profits was at 16.93 per cent as of December 31, 2020 and this will get augmented to approximately 17.68 per cent with this capital inflow," it added.

In September 2020, the bank completed preferential issues of equity capital of Rs 3,288 crore and this was subscribed by the promoter as well.

Together with the current warrants conversion, the bank has raised Rs 5,309 crore of equity capital during 2020-21.

IndusInd Bank stock was trading Rs 0.79 per cent up at Rs 1040.80 on BSE.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Thu, February 18 2021. 16:00 IST
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