IndusInd Bank raises Rs 2,021 Cr via conversion of warrants

IndusInd Bank has raised Rs 2,021 crore of common equity capital through conversion of preferential warrants issued to the promoter entities.

Accordingly, IndusInd International Holdings Limited (IIHL) and IndusInd Limited (IL) were issued the preferential warrants.

The warrants were issued as an integral part of the merger with Bharat Financial Inclusion Limited in July 2019.

At the time of subscription to the warrants, the promoter entities had paid Rs 673 crore and the balance amount of Rs 2,021 crore was paid on Thursday.

Consequently, the finance committee of the bank 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 February 17, 2021.

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

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

“The conversion of warrants at a significant premium reflects strong commitment of the promoter entities to the bank,” said Sumant Kathpalia, Managing Director and CEO of IndusInd Bank.

“With this capital raise and continued economic recovery, the Bank is well positioned to execute our strategy of ‘Scale with Sustainability’.” –IANS