The Hinduja family paid a premium of 61% to boost their stakes at IndusInd bank that represents them.
The bank will finish a rights issue for the conversion of warrants and will redeem these warrants at Rs.1,709 for each share i.e. a premium of 61%. They are also planning to sell some of their other investments to raise $227 million for the warrant redemption. The bank was set up by Srichand P Hinduja in 1994. The bank merged with Bharat Financial in 2019 and the holdings of the family in the bank came down to 13%.
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.” SEBI granted extensions to the family but now the funds for the warrants will be paid by 18th February.