Hindujas will pump another Rs 2,700 crore into Indusind Bank through a warrant issue to ramp up the promoter holding after the merger of Bharat Financial, a senior official from the private sector lender has said.
The merger between the bank and the micro-lender, which will be effective July 4, is accretive from a profit, marginand return on equity perspective.
Our promoters will infuse Rs 2,700 crore to get their stake back to 15 percent, strategy head at the bank Sanjay Mallik told media.
He said a fourth of the money will come immediately after the merger, while the rest will come over the next 18 months.
The promoters will be subscribing to the warrants at a premium of Rs 1,709 a share as against the Friday’s close of Rs 1,448.70 on the BSE, Mallik said.
He explained that dilution of their stake to about the 13 percent levels due to the merger with micro-lender is making it possible for the promoters to subscribe to the warrants and increase their holding to 15 percent which is the cap set by regulator.
Merger of Bharat Financial into Indusind Bank was announced in October 2017, as part of which a shareholder would get 639 shares of Indusind Bank for every 1,000 shares of the micro-lender.
Apart from the promoters infusion, the banks capital base will also benefit through the Rs 4,200-crore networth of the merged entity , Mallik said.
