Hinduja Group’s IIHL to acquire 60% stake in Invesco India Asset Management
IIHL is the promoter entity of IndusInd Bank, the fifth largest private lender in India listed on the BSE and the NSE.
IndusInd International Holdings Ltd (IIHL) on Tuesday announced that it has completed raising capital through its rights issue which was oversubscribed. As per company’s official statement, IIHL—promoter company of IndusInd Bank, has raised capital at an overwhelming premium of 1,400 per cent towards the subscription of this rights issue.
“This reiterates the confidence of IIHL’s global shareholders, spread across 34 countries, in the decision of IIHL and its subsidiary, IndusInd Limited, to redeem the balance of 75 per cent of the warrants at the price of Rs 1,709 per share (a huge premium over the current market price of Rs 1,059), aggregating to Rs 2,021.45 crores,” company said in a regulatory filing.
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“Additionally, to support the redemption of warrants, IIHL has decided to monetize some of the other mature, non-core investments. The funds from this divestment and the rights issue will be remitted on or before the February 18, as permitted by SEBI,” it added.
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Earlier 25 per cent warrants were subscribed to in July 2019 on payment of Rs 673.8 crore, amounting to 25 per cent of the offer price of Rs 1,709.
The filing said that this would lead to IIHL shoring up additional equity of 1.7 per cent in IndusInd Bank thereby bringing promoter equity to 15 per cent on a diluted basis.
“This decision by IIHL to redeem the warrants at a premium over the prevailing share price stands testimony to the strong trust and confidence in lnduslnd Bank’s Management and its strategic direction,” it said.
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