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IndusInd Bank shares rise over 2% on capital infusion plan

The Hindujas, promoters of IndusInd Bank, will infuse another Rs 2,700 crore into the private sector lender through a warrant issue to increase the promoter holding after the merger of Bharat Financial

twitter-logo BusinessToday.In   New Delhi     Last Updated: June 24, 2019  | 15:51 IST
IndusInd Bank shares rise over 2% on capital infusion plan
The merger between IndusInd Bank and Bharat Financial will be effective July 4

Shares of IndusInd Bank rose over 2 per cent in intra-day trade on the Bombay Stock Exchange after media reported that its promoters will invest Rs 2,700 crore into the bank through warrants.

Boosted by this development, the share price of IndusInd Bank gained as much as 2.50 per cent to hit an intra-day high of Rs 1,485 against the previous close of Rs 1,448.70 on the BSE. Paring some of the early gains, the stock closed trade at Rs 1,460.70 apiece, up 0.83 per cent.

In a similar fashion, shares of IndusInd Bank ended at Rs 1,459, up 0.71 per cent, on the National Stock Exchange. The scrip opened higher at Rs 1,483 and touched an intra-day high of Rs 1,485.

The Hindujas, promoters of IndusInd Bank, will infuse another Rs 2,700 crore into the private sector lender through a warrant issue to increase the promoter holding after the merger of Bharat Financial, news agency PTI quoted a senior bank official as saying this.

The agency reported that the promoters would be subscribing to the warrants at a discount of Rs 1,709 per share as against the Friday's closing price of Rs 1,448.70 on the BSE.

The merger between IndusInd Bank and the micro-lender Bharat Financial (BFIL), which was previously known as SKS Microfinance, will be effective July 4. The National Company Law Tribunal approved the scheme of arrangement on June 10, 2019.

"July 4, 2019 shall also be the Record Date, following the effectiveness of the scheme, for determining the shareholders of BFIL who shall be entitled to receive shares of the bank, as consideration pursuant to the Scheme," both the companies said in regulatory filings.

In October 2017, IndusInd Bank announced to acquire the country's leading micro-finance player BFIL. As per the scheme of arrangement, shareholders would get 639 shares of IndusInd Bank for every 1,000 shares of the micro-lender.

Edited by Chitranjan Kumar

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