Shares of IndusInd Bank gained over 4% in Friday's afternoon session after apex regulator Reserve Bank of India (RBI) granted approval to an existing investor, Route One Investment to increase its holdings in the private sector lender.
Following the update, shares of IndusInd Bank, that traded 2.71% lower at Rs 500 recovered from early losses and gained 4.31% to an intraday high of Rs 536.1 on BSE.
IndusInd Bank shares trade higher than 5, 20, 50 and 100-day but lower than 200-day moving averages. IndusInd Bank stock has risen 0.27% in one week and 8.35% in one month. Market capitalisation of the firm stood at Rs 35,212 crore as of today's closing session.
Existing stakeholder, Route One Investment Company LP, USA (ROIC) received the nod from RBI to increase its stake to up to 10% of the issued and subscribed capital of the bank from 4.96% earlier.
The company had earlier approached the apex lender to increase stake in IndusInd up to 10%, in accordance with the RBI Master Direction on Prior Approval for Acquisition of Shares in Private Sector Banks.
"RBI has forwarded the Bank a copy of the letter addressed to ROIC, granting approval for increasing their shareholding up to 10% of the paid-up voting equity capital of the bank," IndusInd Bank said in its regulatory filing.
Last month, company promoters had informed the exchanges that they would increase stake and have subsequently bought shares from the open market.
Shares of IndusInd bank closed 1.61% higher at Rs 522.20 on BSE today.