IndusInd International Holdings Limited (IIHL), the promoter of IndusInd Bank with a large shareholder base in the UAE, took the strategic decision to expand its business horizon in India and other global geographies, in the BFSI sector.
Chairman of IIHL, Mr 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 at all”.
The Board also approved the capital raising of up to USD 1.5 billion to meet its twin strategic objectives. The capital raise will pave the way for more acquisitions across geographies, including in the GCC countries with particular focus on the UAE.
“We are open to opportunities in the UAE to grow our BFSI presence with the country’s strong economic growth catalysing business potential,” said Mr. Ashok Hinduja.
The first objective of the capital raising is to increase its promoter shareholding in IndusInd Bank from the current 15% to the proposed 26%. The Board of Directors of IIHL have resolved to undertake capital raise in a phased manner to mobilize the required funds for infusion.
The second objective of the capital raising is towards equity participation for the Reliance Capital acquisition. Today, the Administrator has issued the duly signed Letter of Intent.
Global Sovereign/ 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 3 decades.
