BackING Vysya to allot shares to promoter’s subsidiaries
ING Vysya to allot shares to promoter’s subsidiaries
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Mumbai: Private sector lender ING Vysya Bank Ltd will make a preferential allotment of 10 million shares to the wholly owned subsidiaries of its promoter ING Bank NV, ING Mauritius Holdings and ING Mauritius Investments. This is to enable the promoter to maintain its current holding at 43.81% after the bank’s equity issue that opened on Monday.
ING Vysya Bank is planning to raise Rs330.33 crore from institutional investors at Rs248.09 a share. The issue is managed by Enam Securities Pvt. Ltd and Edelweiss Capital Ltd. ING is the only international group with a controlling stake in an Indian private bank. According to the ownership guideline of the Reserve Bank of India, no single entity can hold more than 10% in a bank. ING took management control of the bank in 2002. The ING Vysya Bank stock on Monday rose 0.10% to Rs248 on the Bombay Stock Exchange.
A few private banks in India are raising equity from institutional investors. The Hinduja group-promoted IndusInd Bank Ltd is one of them. After its recent issue, the promoter stake dipped to 22.2%. Axis Bank Ltd also plans to raise Rs5,000 crore by issuing 71.4 million shares through preferential allotment, private placement, including qualified institutional placements and private offerings through global depository receipts from domestic and international markets.
The Special Undertaking of Unit Trust of India will not participate in ING Vysya’s preferential offer. Its shareholding in the bank will come down from 27.02% to 22.54%.
But Life Insurance Corp. of India will subscribe to the preferential issue to maintain its holding at 10.34%.
anita.b@livemint.com
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