IndusInd Seeks Up to $698 Million in Share Sale to Boost Loans

IndusInd Bank Ltd., the lender backed by India’s billionaire Hinduja brothers, is seeking to raise as much as 44.4 billion rupees ($698 million) in a share sale to institutions, according to terms sent to investors.

The company is offering 51.2 million shares in a so-called qualified institutional placement at 835 rupees to 867.15 rupees apiece, the terms obtained by Bloomberg show. The top end of the range was the stock’s closing price Thursday.

Led by Managing Director Romesh Sobti, IndusInd is raising funds to expand its business, including enhancing its capital adequacy ratio and bolstering its lending capacity. The bank’s loans grew by 25 percent in the year to March, compared with 9.7 percent for India’s banking system, an exchange filing shows.

The lender’s Tier 1 capital ratio, a measure of financial strength, fell to 11.2 percent as of March from 11.5 percent a year earlier, according to the filing. IndusInd had a total capital adequacy ratio of about 12 percent in March.

JM Financial Ltd., Morgan Stanley and Citic CLSA Securities are global coordinators for the sale, the terms showed.

IndusInd will sell an additional 9 million shares to founders of the company to raise as much as 7.8 billion rupees, people familiar with the matter said on Thursday, asking not to be identified as the details are private. The founders owned 15.1 percent of the bank as of March 31, exchange filings show.

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