Hinduja family-backed IndusInd Bank is looking to raise up to $750 million (Rs 5,705 crore at current exchange rate) in “confidence capital” and has approached marquee global investors such as Blackstone, Apax Partners, General Atlantic, Advent, TPG and Carlyle for the same, people close to the development told The Economic Times.
IndusInd Bank, whose stock has been hit by the coronavirus outbreak, wants to soothe investor nerves amidst Covid-19 outbreak and outflow of deposits.
The persons said the promoters are looking at 10% dilution, which at current prices would be valued at Rs.2,373 crore ($320 million).
The investors are likely to negotiate board seats and other affirmative rights which the bank’s promoter family and management are likely to consider, the persons added.
The transaction is similar to the Bain Capital and consortium’s $1.8 billion investment in Axis Bank in 2017 in the wake of worsening asset quality and regulatory glare.