Sebi grants 2 more weeks to IndusInd Bank promoters for residual capital infusion

Sebi grants 2 more weeks to IndusInd Bank promoters for residual capital infusion

Regulator Sebi has provided an additional two weeks to promoters of IndusInd Bank for infusion of residual capital in lieu of conversion of warrants issued to them last year worth over Rs 2,695 crore, a filing said.

The Securities and Exchange Board of India (Sebi) has granted a further period of two weeks beyond the extension of one month granted earlier which was February 4, 2021, IndusInd Bank said in the regulatory filing.

Accordingly, the extension has now been granted till February 18, it said.

Last month, the market regulator had given additional one month time to promoters of the bank from the earlier deadline of January 5, 2021.

IndusInd Bank had issued convertible warrants to its promoters IndusInd International Holdings ltd (IIHL) and its subsidiary IndusInd Ltd (IL) on July 6, 2019 under the composite scheme of arrangement for a total amount of Rs 2,695.26 crore for 1,57,70,985 share warrants.

The promoters had paid Rs 673.82 crore towards warrant subscription for price — 25 per cent of the warrant price of Rs 1,709 per share.

In view of the uncertain times due to the COVID-19 pandemic, the bank had at the request of IIHL and IL approached Sebi for extension in time for payment of the balance amount.

The promoters in a letter to the bank have reiterated their commitment to the subscription to balance amount of warrants to complete the conversion into equity on or before February 18, the bank said in a separate filing.

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