ROIC has recently got the approval of the Reserve Bank of India to double its stake in IndusInd Bank to 10%. The bank’s board of directors in a July 5 meeting had granted approval to the proposed acquisition by Route One.
IndusInd promoters, the Hinduja brothers, are also likely to convert their warrants into shares once the fund raising exercise is complete. Recently, they had purchased at least 19 lakh shares from the open market. The stock has lost nearly 60% of its value in the last six months.
“The fund raising exercise is set to be launched very launch, also post dilution the promoters are also likely to convert warrants to maintain their stake at 15%,” a source in the know said.
IndusInd Bank promoters had also approached the RBI, a couple of months ago to hike stake in IndusInd Bank to 26%. That matter was put on hold by the regulator as it has formulated a committee to review and suggest necessary changes to private bank shareholding norms.