SEBI gives Hindujas 1 month more to subscribe to IndusInd Bank warrants

Mumbai, Dec 16 : Capital markets regulator SEBI has granted Hindujas, the promoters of IndusInd Bank, a month’s extension, till February 4, 2021, to bring in the balance amount of Rs 2,021.45 crore to subscribe to warrants of the bank.

The amount forms 75 per cent of warrants to be converted into the equity of the bank.

“This communication is in sequel to grant of one month extension by SEBI for subscription to balance amount of 75 per cent warrants, aggregating Rs 2,021.45 crore, until February 4, 2020,” the bank said in a regulatory filing.

“The Promoters have proven track record to have stood by Bank since its inception, especially Capital infusion in difficult times,” it said.

In July 2019, the promoters subscribed to 25 per cent warrants aggregating to Rs 673.82 crore, in order to reinforce the confidence in the management and strength of the bank at a price of Rs 1,709 per share, when the market price was hovering at Rs 1,470 per share.

Against the backdrop of Covid19 pandemic, which disrupted business operations of entities across the world, the promoters had requested an extension from the SEBI for payment of balance amount of warrants.

“The Promoters would like to reiterate their confidence in the management & strength of the bank, and commitment to the subscription of balance amount of warrants conversion to the equity,” said the statement.

Disclaimer: This story is auto-generated from IANS service.