Dubai: IndusInd International Holdings Limited (IIHL) Board members have approved a capital raising of up to $1.5 billion to expand its services in the banking, financial services and insurance (BFSI) sector. IIHL, the promoter arm of IndusInd Bank, announced after a Board meeting on Monday.
IIHL also plans on increasing its promoter shareholding in IndusInd Bank from the current 15 per cent to the proposed 26 per cent in a phased manner to mobilise the required funds for infusion.
The second objective of the capital raising is towards equity participation for the Reliance Capital acquisition, said the bank. As reported earlier, IIHL was the sole Resolution Applicant with a bid amount of $ 1.2 billion in the process run under IBC for Reliance Capital Limited.
IIHL Chairman, Ashok P Hinduja, said, “This strategic decision opens boundless opportunities to expand IIHL’s business horizon in India and other global geographies in the BFSI sector. IIHL’s aspirations will not be capital constrained as raising capital for IIHL is not an issue”.
The bank said global sovereign and private equity funds have expressed interest in participating in IIHL’s growth story. The company is likely to be listed by the next year, and this would also give a trading option to its numerous shareholders who have stayed with the company for over three decades.
IIHL recently acquired a majority holding in a Commonwealth of The Bahamas bank and received an in-principle approval for a banking license in Mauritius. The company is also acquiring asset management and wealth management businesses to complete its BFSI (para banking) suite.
IIHL Board has recommended a special interim dividend at 10 per cent to reward its shareholders and approved a buyback scheme for partial dilution for its original shareholders at $20 (Face value of $1).
