IndusInd raises Rs 480 cr via QIP
Indusind Bank has raised Rs 480 crore (around $100 million) through a qualified institutional placement (QIP).
By ET Bureau |
MUMBAI: Indusind Bank has raised Rs 480 crore (around $100 million) through a qualified institutional placement (QIP). Post issue, the bank���s capital adequacy ratio (CAR) will improve to 15-16% from 12.14% as of June 30. (Watch)
The issue price has been fixed at Rs 87.50 for a share with a face value of Rs 10. Post offer, the share capital of the bank will increase by 13.39% to Rs 410 crore. The share price closed at Rs 93.1, up nearly 3%, from its previous close of Rs 90.05.
Speaking to ET, IndusInd Bank MD & CEO Romesh Sobti said: ���The issue had seen a strong response from investors. It was subscribed to within 25 minutes. The response from institutional investors was very encouraging and most of them are long-term investors. The issue was priced at 0.4% discount to the prevailing market price.���
Some of the major investors in the QIP were Goldman Sachs, Morgan Stanley and Templeton. There were no hedge fund investors. The issue had opened on Tuesday. Mr Sobti added that the money would help the bank grow its books for the next 12-15 months. The tier I CAR for the bank will now be at 10-11%.
The promoter shareholding of the bank fell to 22% from 25.6% as of June 30.
The bank had raised money through GDR issue in the past two years. It raised Rs 147 crore in 2007 and Rs 222 crore in 2008. ���In Q1, the loan book of the bank had grown by 24%. We expect the loan book to grow by 25-30% this year,��� said Mr Sobti. Some of the other banks who are looking to raise money through the QIP route include Axis Bank, ING Vysya Bank and Karnataka Bank.
The issue price has been fixed at Rs 87.50 for a share with a face value of Rs 10. Post offer, the share capital of the bank will increase by 13.39% to Rs 410 crore. The share price closed at Rs 93.1, up nearly 3%, from its previous close of Rs 90.05.
Speaking to ET, IndusInd Bank MD & CEO Romesh Sobti said: ���The issue had seen a strong response from investors. It was subscribed to within 25 minutes. The response from institutional investors was very encouraging and most of them are long-term investors. The issue was priced at 0.4% discount to the prevailing market price.���
Some of the major investors in the QIP were Goldman Sachs, Morgan Stanley and Templeton. There were no hedge fund investors. The issue had opened on Tuesday. Mr Sobti added that the money would help the bank grow its books for the next 12-15 months. The tier I CAR for the bank will now be at 10-11%.
The promoter shareholding of the bank fell to 22% from 25.6% as of June 30.
The bank had raised money through GDR issue in the past two years. It raised Rs 147 crore in 2007 and Rs 222 crore in 2008. ���In Q1, the loan book of the bank had grown by 24%. We expect the loan book to grow by 25-30% this year,��� said Mr Sobti. Some of the other banks who are looking to raise money through the QIP route include Axis Bank, ING Vysya Bank and Karnataka Bank.
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