ING Vysya raises Rs 1,836 cr via QIP, preferential issue

MUMBAI: ING Vysya Bank today said it has raised Rs 1,836 crore through qualified institutional placement (QIP) and preferential placement as part of its recapitalisation.

While the private lender raised Rs 881 crore through QIP by issuing 1.439 crore shares, it mopped up the remaining amount via a preferential placement to the parent ING Group.

"ING Vysya completed a QIP issue amounting to Rs 881 crore ... A preferential allotment of 15.61 million equity shares of Rs 10 each will be made to the ING Group at a price of Rs 612 per equity share.

The total capital raised, from QIP and preferential placement, is Rs 1,836 crore," the bank said in a release.

On utilisation of the fund raised, the private sector lender said it would be used to augment capital adequacy and support growth of the Bangalore-headquartered bank.

The bank said despite challenging and uncertain macroeconomic environment, its QIP got significant interest from foreign and domestic institutional investors.

The lead bankers to the issue were Axis Capital, Credit Suisse Securities India and JM Financial Institutional Securities.

Last month, the private lender had said it would raise Rs 2,000 cr in fresh capital in June. This is the third capital infusion by the Dutch Group into the venture. In June 2011, the bank had raised Rs 970 crore through a preferential issue to the promoters apart from QIPs.

The Dutch Group holds 43 per cent in ING Vysya Bank, which has 542 branches in the country.

Earlier this year, ING exited life insurance business by selling its 26 per cent stake to the joint venture partner Exide for Rs 1,100 crore. At that time ING had said that the move was part of a broader strategy to exit its Asian insurance and investment management businesses.

Last fiscal, ING Vysya Bank reported 34 per cent hike in net profit at Rs 613 crore. For the March quarter too it had a similar spike in net income to Rs 170 crore on improved asset quality.