Share price of IndusInd Bank rose 11% in early trade today after the lender said its promoter has made full repayment of a loan to Citibank and got the pledged shares released.
The lender in its latest announcement has said its promoter made full repayment of a loan by IndusInd Ltd, Mauritius to Citibank, London yesterday, against borrowing arrangements availed in September 2016.
The filing further added that a pledge of 23.8 million equity shares of the bank, amounting to 3.43% of current paid-up capital, will be released by Citibank on April 1, 2020.
Bucking the bearish trend, shares of IndusInd Bank opened with a gain of 10% today and later touched an intraday high of Rs 390 rising 11.06% on BSE. Although the shares erased early gains and dropped over 8.87% to the day's low of Rs 320, as against the last closing value of Rs 351.15 on BSE. The stock has traded in a wide range of Rs 70 today.
The stock price of IndusInd Bank has gained 11% in one week. However, it has fallen over 67% in one month and 76% since the beginning of the year. IndusInd Bank share price currently trades lower than 5, 20, 50, 100 and 200-day moving averages.
IndusInd Ltd, Mauritius (Promoters of IndusInd Bank Ltd) have fully repaid the said borrowing arrangements and Security Trustees will be releasing the pledged shares today. With this, the company is now a debt-free entity, the regulatory filing added.
"The holdings of IIHL (Mauritius) and IL (Mauritius) stand at 14.68% of the Bank's Fully Diluted Capital basis. IndusInd International Holdings Ltd (IIHL) and IndusInd Ltd, Mauritius stand committed to maintain their equity holding in IndusInd Bank Ltd at the overall Regulatory Limits prescribed for promoters of private sector banks in India," it added later.