Private equity firms ICICI Venture, Kotak Private Equity and ChrysCapital have invested nearly Rs 200 crore ($43.4 million) in the recently concluded Rs 513 crore ($112 million) qualified institutional placement of private sector lender ING Vysya Bank.
The Bangalore-based bank, in which the Dutch financial major ING group holds 43.35 per cent stake, saw Kotak PE and ICICI Venture come in as new shareholders while ChrysCapital has upped its stake, as per a stock exchange disclosure.
The bank had also raised Rs 457 crore ($100 million) through a preferential allotment to its Amsterdam-headquartered parent ING Group, which has maintained its stake after the issue. Other investors in the issue included Aberdeen Asset Management, Bajaj Allianz Life Insurance Company and Morgan Stanley.
ICICI Venture, through India Advantage Fund Series 3, was the largest investor in the QIP by taking a 2.14 per cent stake in the bank for Rs 100 crore. Kotak PE, through the $440 million Kotak India Growth Fund II, invested Rs 59.28 crore for a 1.27 per cent holding.
ChrysCapital, which re-investing in the bank, has also increased its stake from 1.83 per cent to 2.44 per cent. The PE firm has invested Rs 38 crore through its entity Warhol in the QIP, which was priced at Rs 342.09.
The share price of ING Vysya closed at a discount to its QIP price at Rs 336.7 on Monday, up 2.57 per cent from Friday.
ChrysCapital had invested in ING Vysya Bank in 2004 and exited in late 2009, with an estimated 1.5-2x returns. The Delhi-based PE firm has in the past made good returns on its investments in the sector like Yes Bank, Axis Bank and Centurion Bank of Punjab. ChrysCapital has also in the past re-invested in firms which it has exited profitably, when it picked up stake in infrastructure firm Gammon.
ING Vysya Bank reported 32 per cent increase in net profit for FY11 at Rs 318.7 crore, as compared to Rs 242.2 crore in the previous year. The total income of the bank grew 17 per cent to Rs 1,661.5 crore, with net interest income up by 21 per cent to Rs 1,006.5 crore.
Bangalore-based ING Vysya Bank is headed by MD & CEO Shailendra Bhandari, who joined in 2009 after quitting as head of Tata Capital’s private equity business. Prior to that, he was heading PE- controlled Centurion Bank of Punjab (in which ICICI Venture and ChrysCap were investors), which was acquired by HDFC Bank in 2007.