IndusInd Bank gains 9 per cent on report Route One Investment may raise stake
Published On: Wednesday, July 8, 2020 | By: Team KnowMyStock
IndusInd Bank share price gained over 9% to Rs. 577 in early trade today after a report said US-based hedge fund Route One Investment is likely to raise stake in the private sector lender from current 5.4 per cent to 9.9 per cent. The stock price has gained over 20 per cent in the last 7 days. The market cap of the bank rose to Rs 39,526 crore. Total 24.64 lakh shares changed hands amounting to a turnover of Rs 138.02 crore. Currently, Route One Investment Company has a 5.41 per cent stake in IndusInd Bank through two entities but plans to hike it to around 9.9 per cent through preferential allotment of shares, enabling the bank to strengthen its Balance Sheet and raise capital. The promoters wish to raise their stake in the company to 26 per cent but RBI has reportedly struck down this plan.
A few other investors may also join Route One and participate in what could potentially be a wider fundraising round through the preferential allotment route, under which the bank could dilute a combined stake of 10 percent to all parties.
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