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IndusInd Bank seeks $500-750 mn 'confidence capital', says report

IndusInd Bank's promoters are reportedly considering diluting their stake by 5-10 percent.

April 03, 2020 / 03:37 PM IST
 
 
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IndusInd Bank is looking to raise as much as $500-750 million in 'confidence capital' from global firms, attempting to allay investor's fears after the novel coronavirus (COVID-19) outbreak, The Economic Times reported.

The private lender, backed by the Hinduja family, also saw an outgo of one-tenth of its deposits after Yes Bank went through a crisis.

Global private equity (PE) funds such as Blackstone, Apax Partners, General Atlantic (GA), Advent, TPG, Carlyle and others have been contacted, the report said.

Moneycontrol could not independently verify the report.


IndusInd Bank has asked Morgan Stanley and Citi to approach PE players, the report said, adding that the promoters are considering diluting their stake by 5-10 percent, subject to approval by The Reserve Bank of India (RBI).

The bank is looking at three-to-four investor who have “patient long-term money to invest,” sources told the publication. The investors will most probably negotiate board seats and other affirmative rights, which the bank’s promoter family and management will take into consideration, the report added.



IndusInd Bank's market capitalisation is roughly Rs 21,800 crore.

Moneycontrol News
first published: Apr 3, 2020 03:30 pm

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