India’s IndusInd Bank promoter IIHL approves capital raising of up to $1.5 billion

India’s IndusInd Bank promoter IIHL approves capital raising of up to $1.5 billion

Dubai: IndusInd International Holdings Limited (IIHL) Board members have approved a capital raising of up to $1.5 billion to expand its services in the banking, financial services and insurance (BFSI) sector. IIHL, the promoter arm of IndusInd Bank, announced after a Board meeting on Monday. IIHL also plans on increasing its promoter shareholding in IndusInd Bank from the current 15 per cent to the proposed 26 per cent in a phased manner to mobilise the required funds for infusion. The second objective of the capital raising is towards equity participation for the Reliance Capital acquisition, said the bank. As reported earlier, IIHL was the sole Resolution Applicant with a bid amount of $ 1.2 billion in the process run under IBC for Reliance Capital Limited. IIHL Chairman, Ashok P Hinduja, said, “This strategic decision opens boundless opportunities to expand IIHL’s business horizon in India and other global geographies in the BFSI sector. IIHL’s aspirations will not be capital constrained as raising capital for IIHL is not an issue”. The bank said global sovereign and private equity funds have expressed interest in participating in IIHL’s growth story. The company is likely to be listed by the next year, and this would