IndusInd Bank gains 4% after promoters get Sebi nod for capital infusion1 min read . Updated: 14 Jan 2021, 01:42 PM IST
- The promoters in a letter to the bank have reiterated their commitment to the subscription to balance amount of warrants to complete the conversion into equity on or before 18 February
MUMBAI: Shares of IndusInd Bank rose nearly 4% after the company said the Securities and Exchange Board of India (Sebi) granted prompters an additional two weeks of time for infusion of residual capital in lieu of conversion of warrants issued to them worth over ₹2,695.26 crore
At 1220 pm, the stock traded at ₹975.55, up 3.5% from its previous close, while the benchmark Sensex was up 0.1% at 49,564.31.
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Sebi has granted an extra two weeks, over and above the one-month extension given earlier. Accordingly, promoters now have time till 18 February for the infusion. The announcement was made after market hours on Wednesday.
IndusInd Bank had issued convertible warrants to its promoters IndusInd International Holdings (IIHL) and its subsidiary IndusInd Ltd on 6 July, 2019, under the composite scheme of arrangement for a total of ₹2,695.26 crore for 1,57,70,985 share warrants. Promoters had paid ₹673.82 crore towards subscription of 25% of warrants at ₹1,709 apiece.
In view of the uncertain times due to the covid-19 pandemic, the bank had, at the request of IIHL and IndusInd Ltd, approached Sebi. The promoters in a letter to the bank have reiterated their commitment to the subscription to balance amount of warrants to complete the conversion into equity on or before 18 February, it said.
IndusInd Bank reported a 53.2% year-on-year decline in its September quarter net profit to ₹647.04 crore while total income fell 1.6% to ₹8,731.05 crore.