IndusInd Bank shares jump 3% amid buzz over $1-billion fundraise; lender issues clarification

The shares of IndusInd Bank jumped more than 3 percent on November 21, emerging as the top gainer on the Nifty Bank index. This comes even after the private lender denied reports on a possible fund raise.

The stock surged to a high of Rs 856.80 apiece, snapping a three-session losing streak.

Buzz over $1-billion fundraise by IndusInd Bank:

Earlier, Moneycontrol reported that ground work may have started at IndusInd Bank for a billion dollar fund raise. Sources told Moneycontrol that the bank is keeping all options open for an equity raise – such as a qualified institutional placement (QIP) or a preferential issue.

"The bank is clear that it will not raise capital at below book value and given the stock price appreciation in the last few week, capital raise may happen slightly above the book value," said a banker. Bankers indicate that the equity raise may be priced between Rs 875 - 950 per share, depending upon the feedback from investors. The incoming investor subscribing to the preferential issue is expected to pump in about Rs 6,000 – 7,000 crore of fresh capital into the bank, while its promoters, primarily IndusInd Holdings Limited is expected to invest Rs 2,500 – 3,000 crore of capital to retain the promoter’s overall stake at 15 percent.

Another report by the Economic Times claimed that IndusInd Bank is in the initial stages of assessing investor interest for a possible sale of shares to qualified institutional investors to raise what it called 'confidence capital'.

IndusInd Bank’s clarification:

IndusInd Bank in an exchange filing denied claims regarding any capital raising. “We categorically deny having any such discussions as reported in aforesaid media reports,” it said.

It added that it is conscious of its disclosure obligations, and will continue to comply with the same.

IndusInd Bank share price:

IndusInd Bank shares have gained more than 12 percent in the past one month, and over 10 percent in the past six months. The stock is however down more than 12 percent in 2025 so far.

The stock's P/E ratio currently stands at over 64.

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