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Shares of IndusInd Bank has trade 2 per cent higher after the lender said the Reserve Bank of India (RBI) has allowed one of its foreign investors to double the stake in the firm.
US-based Route One Investment Company, which holds 4.96 per cent stake in the private lender, can now increase its shareholdings to 10 per cent after RBI nod, the company said in its regulatory filing.“Basis reference from RBI, the Board of Directors of the Bank, in their meeting held on July 5, granted its approval to the proposed acquisition of Route One Investment Company, L.P. in our Bank,” IndusInd Bank said.
The stock of the lender was trading at Rs 526.70 on BSE, up 2.48 per cent. Earlier in the month, media reports suggested that the hedge fund had initiated talks to increase its stake in the private lender. Now with the board’s approval, the path is clear for it.
Promoters of the company had said last month that they would increase stake in the company and subsequently bought shares from the open market, as per insider trading data. A back of envelope calculation shows that they grabbed over 19 lakh shares of the company in June.
