CHENNAI: To boost its stake in IndusInd Bank, the Hinduja family has paid a premium amount for redeeming warrants that will be converted into shares in the lender. According to a statement, IndusInd International Holdings Ltd., which represents the bank’s founding Hinduja clan, has completed a rights issue to fund the conversion of warrants to shares in the Mumbai-based bank. The warrants will be redeemed at Rs 1,709 a share, a 61 per cent premium over Tuesday’s closing price.
The holding company also plans to sell some other investments to finance the Rs 2,020 crore ($277 million) warrant redemption. The company said in a statement that the idea to “redeem the warrants at a premium over the prevailing share price stands testimony to the strong trust and confidence in IndusInd Bank’s management and its strategic direction.” The funds will be paid by February 18.
The bank had been founded by Srichand P Hinduja in 1994. The family’s holding in the lender shrank to 13 per cent following its merger with microlender Bharat Financial in July 2019, when the family had redeemed 25 per cent of warrants that year.