IndusInd Bank to raise up to $500 million, Route One among anchor investors: Report
Last week, the US-based hedge fund received RBI's approval to increase stake in the bank to 10% in the private lender. It currently holds a 4.96% stake in IndusInd.
July 28, 2020 / 12:05 PM IST
Private sector lender IndusInd Bank is planning to raise nearly $400-500 million, The Economic Times reported, quoting sources.
As per the report, the Hindujas-backed bank may announce the fundraising plans post its board meeting on July 28. Route One Investment Company LP, USA (ROIC) is likely to be one of the anchor investors and may pump in nearly half the amount, the report added.
Last week, the US-based hedge fund received Reserve Bank of India's (RBI) approval to increase stake in the bank to 10 percent in the private lender. It currently holds a 4.96 percent stake in IndusInd.
The report further added that promoter, the Hinduja brothers, may also convert their warrants into shares once the fundraising is complete.
"The fundraising exercise is set to be launched very launch, also post dilution the promoters are also likely to convert warrants to maintain their stake at 15 percent," the ET report said quoting sources.
Moneycontrol could not independently verify the report.
The multinational conglomerate had recently purchased about 19 lakh shares via open market transactions following a sharp decline in the stock triggered by NPA concerns in the aftermath of the COVID-19 pandemic.
The bank will likely announce its June quarter results today as well. At 10:46 hrs, IndusInd Bank was quoting Rs 517.8, up 2.2 percent on the NSE. The stock is down about 60 percent on a year-to-date basis.