IndusInd Bank share price gained over 9 percent intraday on July 8 on reports of US-based hedge fund Route One Investment Company initiating talks to increase its stake in the Hinduja Group-backed lender.
The stock price has gained over 20 percent in the last 7 days and was trading at Rs 572.55, up Rs 46.35, or 8.81 percent. It has touched an intraday high of Rs 577.80 and an intraday low of Rs 532.05.
US-based hedge fund Route One Investment Company had initiated talks to increase its stake in the Hinduja Group-backed lender, which is exploring multiple options to strengthen its Balance Sheet and raise capital, sources told Moneycontrol.
“Route One Investment Company currently holds a 5.41 percent stake in IndusInd Bank through two entities. The plan is to hike it to around 9.9 percent via a preferential allotment of shares. But a final call is yet to be taken by the bank’s board,” an individual privy to the proposed transaction told Moneycontrol.
“RBI was approached for permission and Route One Investment Company has obtained the requisite approval from the regulator for the stake hike,” said a second individual. The preferential allotment is the quickest route for fund raising and the ‘fit and proper’ criteria was also applied on the investor and approved as part of the process, the second individual added.
“The promoters -- Hinduja group -- are also keen to hike their stake in IndusInd Bank to 26 percent from the current 14.34 percent (close to regulatory cap of 15 percent) and that is a parallel ongoing process, but that is subject to the RBI’s approval,” another person added.
According to Moneycontrol SWOT Analysis powered by Trendlyne, IndusInd Bank is showing increase in revenue every quarter for the past four quarters with FII / FPI or institutions increasing their shareholding.
Moneycontrol technical rating is very bullish with moving averages and technical indicators being bullish.
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