IndusInd International Holdings (IIHL), the Hinduja group entity which is classified as a promoter of IndusInd Bank, is raising its stake in the private sector lender to 26 per cent from 15 per cent.
IIHL on Monday said it would raise $1.5 billion (around Rs 12,300 crore) to increase its stake in the bank and finance its acquisition of Reliance Capital.
A statement from Mauritius-based IIHL said its board took the strategic decision to expand its business horizon in India and other global geographies in BFSI (banking, financial services and insurance).
“The decision to raise $1.5 billion opens up boundless opportunities to expand our business horizon in the country and also other global geographies, in the BFSI sector. Our aspirations will not be capital constrained as raising capital is not an issue at all for us,” IIHL chairman Ashok P. Hinduja said.
IIHL said the first objective of the capital mobilisation is to increase its shareholding in IndusInd Bank to the proposed 26 per cent.
It pointed out that the guidelines of the Reserve Bank of India (RBI) allow the promoters of IndusInd Bank to increase their shareholding in the lender to 26 per cent by following due procedures, subject to the assessment of ‘‘fit and proper’’ status by the banking regulator.
The board of IIHL, therefore, decided to raise capital in a phased manner to mobilise the required funds in the bank, the IIHL statement said.
The fund-raising will also help IIHL to acquire Reliance Capital.
On June 29, the lenders to debt-laden Reliance Capital had accepted the revised Rs 9,661 crore bid by IIHL.
According to IIHL, the underlying operating companies in Reliance Capital are in insurance (life, general and health), asset reconstruction and broking.
This, IIHL said, would augur well to meet its aspirations in the BFSI sector.
The firm disclosed that global sovereign and private equity funds have expressed interest in participating in its growth story and that it is likely to be listed by the next year.
IIHL recently acquired a majority holding in a bank in the Bahamas and also received in-principle approval for a banking licence in Mauritius.
