Hinduja Group likely to invest Rs 10,000 crore in IndusInd Bank; raise stake from 17% to 26%: Report

The Hinduja Group is reportedly in talks to invest Rs 10,000 cr to hike stake in IndusInd Bank and the deal is likley to be completed by the second half of FY24, ETNow reported. Shares of IndusInd Bank jumped over 3% in Friday’s trade on reports that the Reserve Bank of India (RBI) may give the go-ahead for Hinduja Group to hike its stake in the lender from to 26%. The stock ended at Rs 1,309.40 on the NSE on Friday.

Earlier this year, the banking watchdog gave in-principle and conditional approval to IndusInd International Holdings, a Hinduja Group entity, to raise its stake in IndusInd Bank to 26%.

IndusInd Bank is a minority-owned by promoters, whose stake stood at 16.51%, out of which IndusInd International Holdings had 12.58% and IndusInd Ltd had 3.92% as of the March quarter.

So far this year, the bank's shares have rallied about 7% and offered nearly 67% returns in the last one-year period.

Last month, the private lender hit a Rs 1 lakh crore market cap after a gap of three years. The stock had previously closed over the Rs 1 lakh crore mark in January 2020 and then during the Covid-led market crash, its market value slipped below Rs 20,889 crore in March 2020.

The stock is trading near its 52-week high of Rs 1,342.90, which it hit on June 13. Its 52-week low stands at Rs 763.20.

The counter has outperformed the Nifty 50 by more than 45% during the 1-year period but this rally has not been without high volatility seen in the stock price. IndusInd Bank shares have traded with a 1-year beta of 1.1 according to Trendlyne data.