Hindujas may list IndusInd parent IndusInd International Holdings
MUMBAI: The promoters of IndusInd Bank, the Mauritius-incorporated IndusInd International Holdings (IIHL), are planning a public listing of the company in the next two years. The move would potentially help the London-based billionaire Hinduja brothers to raise their economic interest in India's new-generation bank. The listing is aimed at making IIHL a widely held and well regulated entity.
“We are planning to list IIHL by 2019 and various jurisdictions are being considered currently . This will help to increase stake in the bank from the present levels of 15%,“ Ashok Hinduja, chairman, Hinduja Group India, told TOI in an interview. He said IIHL already has a shareholder base of approximately 700 spread across the world. The promoter entity raised $120 million through a rights issue six months back, and would consider a second tranche in the current fiscal to maintain shareholding in the Mumbaibased bank, which has been raising capital. The objective of the rights issue was also to raise capital “to search and acquire for a financial services activity in the jurisdictions being considered for the eventual listing“.
The understated Indian conglomerate, with at least $35 billion in revenue, and led by the eldest sibling Srichand Hinduja, is keen on protecting and increasing its economic interest in IndusInd Bank, valued at $1.5 billion after the share price touched record highs last week.In 1994, Hindujas spearheaded a group of non-resident Indians to launch the bank, which has more than 1,000 branches and assets worth over $15 billion.
The youngest of the four brothers, Ashok Hinduja, said the bank's chairman and managing director Romesh Sobti has done an impressive job in winning the confidence of all stakeholders and the markets.The bank wants to take the digital route to double the business, which is capitaland infrastructure-efficient, and fits well with Prime Minister Narendra Modi's Digital India promise, he added. Hinduja said the bank will participate in the ongoing financial services sector consolidation, if an acquisition added value. IndusInd -which had acquired Deutsche Bank's credit card unit, and more recently IL&FS Securities -is being linked to a potential acquisition of microfinance lender Bharat Financial, formerly known as SKS.
Incubating New Indian Biz
AshokHinduja said the group was building multiple new businesses in cyber security, renewable power and home broadband services to ride on the renewed India growth story . He said a strong central government that is pushing for a growth-oriented policy framework makes India attractive.“If you look around the world, where else would one see such a large market with huge growth opportunities?“. Hinduja said the capex programme of its listed companies -Ashok Leyland, Gulf Oil and others -alone involved more than Rs 15,000 crore investments in the next three years.
Hindujas are poised to announce a cyber security joint venture with a US tech major to tackle the opportunities presented by the proliferation of connected devices and Internet of Things (IoT) in India. The group also incorporated Hinduja Renewable Power, which has forayed into solar energy with a small 20MW acquisition in recent months.This entity will initially drive solar power generation in the rooftop and utility segments.Another recent entry is focused on affordable home broadband, to make IPTV expand faster in the country's top cities and smaller towns. The Hinduja Group's real estate arm, Hinduja Re alty Ventures, will look to monetise an estimated 5,000-acre land bank across India. Hinduja said the group was open to evaluating takeover of distressed assets, especially in sectors like thermal power, but would wait for clarity on the bad loan resolution process.
The Hinduja family has for long shied away from taking board positions in many publicly listed companies, but that changed dramatically in recent years with the next generation helming group companies in non-executive roles. Dheeraj Hinduja chairs Ashok Leyland, Sanjay Hinduja heads Gulf Oil board, Remi Hinduja at Hinduja Global Solutions and Ajay Hinduja at GOCL. Ashok Hinduja's son Shom is leading the group's efforts in alternate energy , digital and sustainability businesses (the last one could see Hinduja Leyland Finance tapping green bonds for financing threeand four-wheeler electric vehicles in urban transportation).
However, Hinduja argued that some approaches won't change. The family's original mandate -not to tap for-profit ventures in healthcare and education -saw it roll back plans to build a corporate hospital chain in India. Last year, Hindujas were seen partnering with Everstone Capital to acquire Care Hospitals, one of the country's top five private healthcare chains, as part of a strategy to develop a new business. This was stalled when it was pointed out during internal dialogues that the family was not expected to back for-profit operations in sectors such as healthcare and education.
“We are planning to list IIHL by 2019 and various jurisdictions are being considered currently . This will help to increase stake in the bank from the present levels of 15%,“ Ashok Hinduja, chairman, Hinduja Group India, told TOI in an interview. He said IIHL already has a shareholder base of approximately 700 spread across the world. The promoter entity raised $120 million through a rights issue six months back, and would consider a second tranche in the current fiscal to maintain shareholding in the Mumbaibased bank, which has been raising capital. The objective of the rights issue was also to raise capital “to search and acquire for a financial services activity in the jurisdictions being considered for the eventual listing“.
The understated Indian conglomerate, with at least $35 billion in revenue, and led by the eldest sibling Srichand Hinduja, is keen on protecting and increasing its economic interest in IndusInd Bank, valued at $1.5 billion after the share price touched record highs last week.In 1994, Hindujas spearheaded a group of non-resident Indians to launch the bank, which has more than 1,000 branches and assets worth over $15 billion.
The youngest of the four brothers, Ashok Hinduja, said the bank's chairman and managing director Romesh Sobti has done an impressive job in winning the confidence of all stakeholders and the markets.The bank wants to take the digital route to double the business, which is capitaland infrastructure-efficient, and fits well with Prime Minister Narendra Modi's Digital India promise, he added. Hinduja said the bank will participate in the ongoing financial services sector consolidation, if an acquisition added value. IndusInd -which had acquired Deutsche Bank's credit card unit, and more recently IL&FS Securities -is being linked to a potential acquisition of microfinance lender Bharat Financial, formerly known as SKS.
Incubating New Indian Biz
AshokHinduja said the group was building multiple new businesses in cyber security, renewable power and home broadband services to ride on the renewed India growth story . He said a strong central government that is pushing for a growth-oriented policy framework makes India attractive.“If you look around the world, where else would one see such a large market with huge growth opportunities?“. Hinduja said the capex programme of its listed companies -Ashok Leyland, Gulf Oil and others -alone involved more than Rs 15,000 crore investments in the next three years.
Hindujas are poised to announce a cyber security joint venture with a US tech major to tackle the opportunities presented by the proliferation of connected devices and Internet of Things (IoT) in India. The group also incorporated Hinduja Renewable Power, which has forayed into solar energy with a small 20MW acquisition in recent months.This entity will initially drive solar power generation in the rooftop and utility segments.Another recent entry is focused on affordable home broadband, to make IPTV expand faster in the country's top cities and smaller towns. The Hinduja Group's real estate arm, Hinduja Re alty Ventures, will look to monetise an estimated 5,000-acre land bank across India. Hinduja said the group was open to evaluating takeover of distressed assets, especially in sectors like thermal power, but would wait for clarity on the bad loan resolution process.
The Hinduja family has for long shied away from taking board positions in many publicly listed companies, but that changed dramatically in recent years with the next generation helming group companies in non-executive roles. Dheeraj Hinduja chairs Ashok Leyland, Sanjay Hinduja heads Gulf Oil board, Remi Hinduja at Hinduja Global Solutions and Ajay Hinduja at GOCL. Ashok Hinduja's son Shom is leading the group's efforts in alternate energy , digital and sustainability businesses (the last one could see Hinduja Leyland Finance tapping green bonds for financing threeand four-wheeler electric vehicles in urban transportation).
However, Hinduja argued that some approaches won't change. The family's original mandate -not to tap for-profit ventures in healthcare and education -saw it roll back plans to build a corporate hospital chain in India. Last year, Hindujas were seen partnering with Everstone Capital to acquire Care Hospitals, one of the country's top five private healthcare chains, as part of a strategy to develop a new business. This was stalled when it was pointed out during internal dialogues that the family was not expected to back for-profit operations in sectors such as healthcare and education.
