The promoter group entities of IndusInd Bank have paid a premium of 61 per cent to raise their stake in the private sector bank through a warrant conversion.

To fund the conversion of warrants, IndusInd International Holdings Ltd (IIHL), which is the Hinduja family’s investment vehicle, had come out with a rights issue which was over-subscribed.

It may be recalled that the bank had issued convertible warrants to IIHL and IndusInd on July 6, 20I9.
Both the entities had paid Rs 495.29 crore and Rs 178.53 crore, respectively, (aggregating Rs 673.81 crore) towards the warrant subscription, which was 25 per cent of the total payment.

Market regulator Sebi had given additional time to the promoters of the bank for the conversion of warrants into shares — first by one month till February 4 and then by two weeks till February 18 for payment of the balance 75 per cent. In all, the bank was issuing 1,57,70,985 warrants aggregating to Rs 2,695.26 crore.

In a late evening regulatory filing to the exchanges, IndusInd Bank said IIHL and its subsidiary IndusInd Ltd have now redeemed the balance of 75 per cent of the warrants at a price of Rs 1,709 per share. This is a premium of almost 61 per cent to the closing price of Rs 1,058.65 of the IndusInd Bank share on Tuesday.

On Wednesday, the scrip settled 2.46 per cent lower at Rs 1,032.60 on the BSE.