IndusInd Bank Seeks Up to $359 Million in Share Placement
IndusInd Bank Ltd. (IIB), the lender backed by India’s billionaire Hinduja brothers, is seeking to raise as much as 20 billion rupees ($359 million) in a share sale to institutions, according to terms sent to investors.
The company is offering 52.1 million shares in a so-called qualified institutional placement at 375 rupees to 384 rupees apiece, the terms, obtained by Bloomberg News, show.
After gaining as much as 3.9 percent earlier, its largest gain since March, IndusInd was up 3.4 percent at 397.55 rupees as of 11:07 a.m. in Mumbai today.
The fundraising by Mumbai-based IndusInd, whose shares have risen more than 70 percent this year, was approved at the company’s annual meeting in July. The company is considering raising funds to bolster its capital base, Chief Executive Officer Romesh Sobti said on a Oct. 10 conference call.
Paul Abraham, IndusInd’s chief operating officer, didn’t reply to an e-mail and phone call to his office seeking comment on the size and timing of the sale today.
The lender’s so-called Tier 1 capital ratio, a measure of a bank’s financial strength, fell to 11.4 percent by March 2012, from 12.3 percent a year before, data compiled by Bloomberg show. The lender had a Tier 1 ratio of about 11 percent at the end of September, Sobti said on the October call.
JM Financial Services Pvt., HSBC Holdings Plc (HSBA), Morgan Stanley (MS) and CLSA Asia-Pacific Markets are managing the sale, people with knowledge of the matter said yesterday, asking not to be identified as the information is private.
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