 "IndusInd Bank raises about Rs 4,440-cr through QIP")
The Hinduja brothers-promoted IndusInd Bank raised Rs 4,440 crore via share sale to institutional investors for building capability to expand its business. The sale that started on Thursday night for book-building was subscribed by two times, said a banker familiar with the transaction. He did not disclose the price at which the shares were finally placed. The issue was priced in the band of Rs 835-867 a share and it was expected to raise Rs 4,440 crore at the upper limit of the band.
This comes after the shareholders approved raising Rs 780 crore from the promoters through preferential allotment. The promoters will infuse equity to maintain their holding at 15.1 per cent, following the institutional placement.
“We will apply the net proceeds primarily to meet the needs of our growing business, including long-term capital requirements for pursuing our growth plans and to enhance our capital adequacy ratio, to increase our capacity to lend and for general corporate purposes,” said the bank in its placement document filed with the exchanges. Prior to this, the bank tapped the qualified institutional placement (QIP) route, in November 2012, to raise Rs 2,000 crore.
At the end of March, the capital adequacy ratio fell to 12.09 per from 13.83 per cent a year earlier. In 2014-15, total advances grew 25 per cent to Rs 68,788 crore and deposits rose to Rs 74,134 crore, up 23 per cent. For the full year, net profit stood at Rs 1,794 crore, up 27 per cent.
The private lender has hired investment banks Morgan Stanley, CLSA, JM Financial, JP Morgan, Citi, Goldman Sachs and Credit Suisse as book-running lead managers to the issue. The bank’s share rose 0.20 per cent to Rs 866.50 at the BSE on Friday.
This comes after the shareholders approved raising Rs 780 crore from the promoters through preferential allotment. The promoters will infuse equity to maintain their holding at 15.1 per cent, following the institutional placement.
“We will apply the net proceeds primarily to meet the needs of our growing business, including long-term capital requirements for pursuing our growth plans and to enhance our capital adequacy ratio, to increase our capacity to lend and for general corporate purposes,” said the bank in its placement document filed with the exchanges. Prior to this, the bank tapped the qualified institutional placement (QIP) route, in November 2012, to raise Rs 2,000 crore.
At the end of March, the capital adequacy ratio fell to 12.09 per from 13.83 per cent a year earlier. In 2014-15, total advances grew 25 per cent to Rs 68,788 crore and deposits rose to Rs 74,134 crore, up 23 per cent. For the full year, net profit stood at Rs 1,794 crore, up 27 per cent.
The private lender has hired investment banks Morgan Stanley, CLSA, JM Financial, JP Morgan, Citi, Goldman Sachs and Credit Suisse as book-running lead managers to the issue. The bank’s share rose 0.20 per cent to Rs 866.50 at the BSE on Friday.