IndusInd Bank promoters conclude fundraise through rights issue
Funds from this disinvestment and rights issue will be remitted on or before February 18, 2021, as allowed by SEBI, the IndusInd Bank said
BusinessToday.In | February 17, 2021 | Updated 12:47 IST
The promoters stake would touch 15 per cent once they infuse additional capital into IndusInd Bank
IndusInd International Holdings Ltd (IIHL), the promoter company of IndusInd Bank, has concluded fundraise process through a rights issue, which was oversubscribed.
The company raised the capital at an overwhelming premium of 1,400 per cent the subscription of this rights issue, the bank said in a statement to the stock exchanges.
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The Securities and Exchange Board of India (Sebi) has granted Hindujas more than a month, till February 04, 2021, to bring in the balance amount of Rs 2,021.45 crore to subscribe to warrants of IndusInd Bank. This amount forms 75 per cent of warrants, to be converted into the equity of the bank, of which the Hindujas are the promoters. The Covid-19 pandemic had disrupted the business operations of entities across the world. Among the many measures to safeguard the economy, RBI also extended the loan moratorium. It in this background that the bank, on behalf of promoter entities IndusInd International Holdings Ltd and its subsidiary, had sought extension in time for payment of balance amount.