IIHL approves capital raising of up to $1.5 bn for strategic objectives

Ashok P Hinduja, chairman, IIHL, said that this plan will help in expanding IIHL’s business and IIHL’s aspirations will not be capital constrained as raising capital for IIHL is not an issue.

The IIHL Board approved the capital raising of up to $1.5 billion to meet its two strategic objectives. The first objective of the capital raising is to increase its promoter shareholding in IndusInd Bank from 15 per cent to the proposed 26 per cent, as they are eligible to increase their shareholding by following the procedure laid down subject to the assessment of ‘fit and proper’ status by the Reserve Bank of India (RBI).

The second objective is towards equity participation in the Reliance Capital acquisition. As reported earlier, IIHL was the sole resolution applicant with a bid amount of Rs 9,650 crores in the process run under the Insolvency and Bankruptcy Code (IBC) for Reliance Capital Limited.

IIHL is likely to be listed by 2024 and this would also give trading options to its shareholders who have been with the company for over three decades.

IIHL Board has recommended a special interim dividend at the rate of 10 per cent to reward its shareholders. The Board has also approved a buyback scheme for partial dilution for its original shareholders at $20.

The company’s vision is to be a global financial services institution with a commitment to excellence in international orientation, innovation, speed, and strict compliance with the principles of good corporate governance, according to the press release.