IndusInd Bank gains 8% as promoters set to pick additional shares

In the past three months, IndusInd Bank's stock had plunged 61 per cent
Shares of IndusInd Bank shot up 8 per cent to Rs 455 on the BSE on Monday after the private sector lender said that its promoters would acquire additional shares of the Bank from the secondary market.

In the past three months till Friday, IndusInd Bank's stock had underperformed the market by falling 61 per cent, as compared to 14 per cent decline in the S&P BSE Sensex. The stock tanked 79 per cent from its all-time high level of Rs 2,038, touched on August 3, 2018. The stock hit a 52-week low of Rs 236 on March 24, 2020.

The promoters, IndusInd International Holdings Ltd. and IndusInd Ltd., currently hold 14.68 per cent of the paid-up share capital of the IndusInd Bank.

“The promoters shall now purchase additional shares from the open market within the overall regulatory limit prescribed for promoter equity holding cap,” IndusInd Bank said in an exchange filing.

In April, the bank had said, in a regulatory filing, that the Promoters of the Bank applied to the Reserve Bank of India (RBI) for increasing their permissible holdings to 26 per cent. On a fully diluted basis, the Promoters of the Bank have a holding of 14.68 per cent which is very close to the current regulatory cap of 15 per cent.

At 09:23 am, IndusInd Bank was trading 7 per cent higher at Rs 452 on the BSE, as compared to 1.8 per cent rise in the S&P BSE Sensex. A combined 2.9 million equity shares have changed hands on the counter on the BSE and NSE, so far.

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