IndusInd Bank rose 3.78% to Rs 978.40 after Sebi granted an additional two weeks to promoters of the bank for infusion of residual capital in lieu of conversion of shares warrants issued to them worth over Rs 2,695.26 crore.
The Securities and Exchange Board of India (Sebi) has granted a further period of two weeks beyond the extension of one month granted earlier which was 4 February 2021. Accordingly, the extension has now been granted till 18 February 2021.IndusInd Bank had issued convertible warrants to its promoters IndusInd International Holdings (IIHL) and its subsidiary IndusInd on 6 July 2019 under the composite scheme of arrangement for a total amount of Rs 2,695.26 crore for 1,57,70,985 share warrants. The promoters had paid Rs 673.82 crore towards warrant subscription for price - 25% of the warrant price of Rs 1,709 per share.
In view of the uncertain times due to the COVID-19 pandemic, the bank had at the request of IIHL and IL approached Sebi for extension in time for payment of the balance amount. The promoters in a letter to the bank have reiterated their commitment to the subscription to balance amount of warrants to complete the conversion into equity on or before 18 February.
IndusInd Bank caters to the needs of both consumer and corporate customers. It reported 53.2% decline in net profit to Rs 647.04 crore on 1.6% fall in total income to Rs 8,731.05 crore in Q2 FY21 over Q2 FY20.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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