ICICI Prudential Life Insurance to invest Rs850 cr
MUMBAI: The board of directors of IndusInd Bank Ltd, in its meeting held on Tuesday approved a proposal to raise Rs3,288 crore through a preferential issue of fully paid up 6.275 crore equity shares at a price of Rs524 apiece, to a set of marquee investors and the promoter, an official statement issued by the bank said.
IndusInd Bank is already well capitalised with a CRAR (including Q1 FY21 profits) of 15.3 per cent as of June 30, 2020.
Subsequent to the proposed capital raise, the post-issue CRAR is estimated to be 16.5 per cent. The preferential issue is subject to shareholder approval and other necessary approvals.
The extraordinary general meeting (EGM) of shareholders, to consider the preferential issue, is scheduled to be held on August 25, 2020.
While ICICI Prudential Life Insurance Company Ltd will invest Rs850 crore, the other investors include Route One Offshore Master Fund LP, Tata Investment Corporation Ltd, AIA Company Ltd, Hinduja Capital Ltd and IndusInd International Holdings Ltd.
The bank said it will use the newly raised capital to continue to invest in liabilities and asset franchise, technology and infrastructure platforms, to expand reach, product offerings and to improve customer experience whilst ensuring sustainable financial parameters.
