Private sector lender IndusInd Bank has closed its qualified institutional placement (QIP) transaction by raising R2,000 crore. The bank had issued 5.21 crore new equity shares consisting of 9.98% total outstanding equity shares of the bank following the QIP issue. The issue was priced at R384 per equity share, which was a 2.7% premium to the floor price of Rs 374.05.
The bank said this was the third time it used the QIP route to raise funds and the issuance evinced interest from FIIs as well as domestic investors. The bank had last raised R1,150 crore in September 2010.
The capital will be used to support growth and also the total capital adequacy ratio, the bank said in a statement. IndusInd?s capital adequacy ratio at the end of September stood at 12.85%, while, Tier-I capital was 11.76%.
?Although the bank is already well capitalised, this equity raising will ensure that its growth continues apace,? Romesh Sobti, MD & CEO, IndusInd Bank said
Morgan Stanley India, JM Financial Institutional Securities, CLSA India and HSBC Securities and Capital Markets (India) were the joint coordinators and book runners to the QIP issue.
