Sebi grants 2 extra weeks to IndusInd Financial institution promoters for residual capital infusion

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Regulator Sebi has offered an extra two weeks to promoters of IndusInd Bank for infusion of residual capital in lieu of conversion of warrants issued to them final yr price over Rs 2,695 crore, a submitting stated.

The Securities and Trade Board of India (Sebi) has granted an additional interval of two weeks past the extension of 1 month granted earlier which was February 4, 2021, IndusInd Financial institution stated within the regulatory submitting.

Accordingly, the extension has now been granted until February 18, it stated.

Final month, the market regulator had given extra one month time to promoters of the financial institution from the sooner deadline of January 5, 2021.

IndusInd Financial institution had issued convertible warrants to its promoters IndusInd Worldwide Holdings ltd (IIHL) and its subsidiary IndusInd Ltd (IL) on July 6, 2019 beneath the composite scheme of association for a complete quantity of Rs 2,695.26 crore for 1,57,70,985 share warrants.

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

In view of the unsure occasions because of the COVID-19 pandemic, the financial institution had on the request of IIHL and IL approached Sebi for extension in time for cost of the stability quantity.

The promoters in a letter to the financial institution have reiterated their dedication to the subscription to stability quantity of warrants to finish the conversion into fairness on or earlier than February 18, the financial institution stated in a separate submitting.