IndusInd Bank raises Rs. 2021 crores common equity via conversion of warrants issued to the Promoters
IndusInd Bank raised Rs 2021 crores of common equity funding through conversion of preferential warrants issued to the Promoter entities -- IndusInd International Holdings Limited (IIHL) and IndusInd Limited (IL). The promoter entities had paid Rs 673 crores in the time of subscription to the warrants as well as the balance amount of Rs 2021 crores was paid today.
The finance committee of the Bank today approved allotment of 1,57,70,985 stocks to the Promoter entities. The warrants are converted at a price of Rs 1,709 per share reflecting a premium of 65% on the closing price on February 17, 2021.
The Bank's already healthy capital adequacy ratios have further strengthened with this infusion from the promoter entities. The capital adequacy ratio including 9MFY21 profits was at 16.93% as of December 31, 2020 and this may get augmented to approximately 17.68% with this capital inflow.
Earlier in September 2020, the Bank completed preferential issues of equity capital of Rs 3,288 Crores and this has been subscribed by the Promoter as well. Together with the current warrants conversion, the Bank has raised Rs 5,309 crores of equity funding during the financial year 2020- 21.
On the effective conversion of the preferential warrants, Mr Sumant Kathpalia, Handling Director and CEO of IndusInd Bank said, "The conversion of warrants at a Substantial premium Reflects strong dedication of the Promoter entities into the Bank. With this capital increase and Continued economic recovery, the Bank is well positioned to execute our plan of "Scale together with Sustainability". I thank the Promoters for their steadfast belief in the direction and Supporting the Bank in every opportunity for capital contribution."