Private sector lender IndusInd Bank today successfully closed its qualified institutional placement (QIP) transaction by raising Rs 2,000 crore ($369.1 million).
The Mumbai-based lender issued 52.1 million new shares, comprising of 9.98% of its post-issue share capital, to investors at a price of Rs 384 per share. The QIP issue launched on November 26, 2012.
The transaction was done at a 2.7% premium to the floor price of Rs 374.05, discovered using Sebi pricing formula.
Shares of IndusInd Bank were last trading at Rs 411, down Rs 6.6, or 1.58% on the National Stock Exchange.
“The QIP issue received a response from high quality FIIs as well as domestic investors,” IndusInd Bank said in a release.
The funds raised will be used to support its growth and augment its capital adequacy ratio (CAR).
Romesh Sobti, managing director & CEO, IndusInd Bank said, “Although the bank is already well capitalised, this equity raising will ensure that its growth continues apace.”
Morgan Stanley, JM Financial, CLSA India and HSBC Securities were the joint global coordinators and book running lead managers to the issue.
This was the third time that IndusInd Bank raised capital through the QIP route.