Mumbai, July 28 : Private lender IndusInd Bank will raise Rs 3,288 crore through a preferential issue.
The preferential issue of fully paid-up 6.275 crore equity shares, priced at Rs 524 per share, will be for a set of marquee investors and the promoter.
“The preferential issue is subject to shareholder approval and other necessary approvals. The extraordinary general meeting of shareholders, to consider the preferential issue, is scheduled to be held on August 25, 2020,” the bank said in a statement.
“The bank is already well capitalised with a CRAR (including Q1 FY21 profits) of 15.3 per cent as of 30th June 2020. Subsequent to the proposed capital raise, the post-issue CRAR is estimated to be 16.5 per cent.”
The raised capital will be used to continue to invest in liabilities and asset franchise, technology and infrastructure platforms, to expand reach, product offerings and to improve customer experience whilst ensuring sustainable financial parameters, bank said in a statement.
As per the statement, in accordance with SEBI ICDR Regulations, the proposed preferential issue shall be completed within a period of 15 days from the date of approval by the shareholders at the EGM.
“This capital raise from long term, foreign as well as domestic investors, is strategic for us as this helps us bolster the bank’s balance sheet and position the bank well as the economy gradually navigates out of the Covid-19 pandemic,” Sumant Kathpalia, Managing Director and CEO, IndusInd Bank was quoted as saying in the statement.
“The capital raise also reflects the continued support and confidence that our promoters have in the bank. We recognise and value the trust and confidence being placed on us by our shareholders, depositors, customers and rating agencies and are committed to remaining focused on creating value for all our stakeholders.”
–IANS
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