IndusInd Bank gains 0.6% on invoking McLeod Russel’s pledge

NEW DELHI: Shares of IndusInd Bank gained 0.6% in early Mumbai trading on Thursday after the private sector lender said it has acquired a 4.79% stake in the beleaguered tea plantation company, McLeod Russel India.

At 10:10 hours (IST),shares of IndusInd Bank traded at Rs 1, 129.90, registering a gain of 0.60% on the National Stock Exchange.

"We wish to inform that the bank had yesterday, i.e., September 28, 2021, pursuant to invocation of pledge of shares, acquired 50,00,000 equity shares of McLeod Russel India Ltd," IndusInd Bank said in a regulatory filing.

McLeod Russel India, which are held by Ichamati Investments, had pledged the shares with IndusInd Bank in order to secure outstanding dues of the tea plantation firm.

The purchase of 50 lakh shares of the tea company accounts for 4.79% of the paid-up equity share capital of McLeod Russel. The bank said it invoked the pledged shares for recovery of dues.