ING Vysya raises Rs 970 crore from QIP, preferential allotment

The private sector lender ING Vysya today raised Rs 970 crore through qualified instititutional placements (QIP) and preferential allotment of shares to the promoters.

The Bangalore-headquartered bank raised approximately Rs 513 crore through the QIP route by placing 1.5 crore shares to a clutch of private equity funds, mutual funds and foreign institutional investors, chief financial officer  Jayant Mehrotra told PTI over phone from the Garden City.

To maintain promoter ING's share holding at the current 43.93% post QIP, the bank also allotted 1.2 crore shares on a preferential basis to ING, which resulted in the realisation of a further Rs 457 crore, he said.

The QIP was done at Rs 342.09 a share while the preferential placement happened at Rs 344.23 a share.

The ING Vysya scrip closed 2.05% down to Rs 329.40 on the Bombay Stock Exchange today, which ended 146 points down, spooked by the RBI tightening.

"With the new infusion, our total capital adequacy ratio goes up to 16.5% with the core Tier-I capital touching 12.9%," Mehrotra said.

The proceeds will be utilised for lending activities, he said, without disclosing a targeted loan growth for the year. The bank will not be needing any more capital for the fiscal, he added.

Shareholders of the bank had given an approval to strengthen the capital base on June 8 following which the issue was carried through, Mehrotra said.

IDFC Capital, JM Financial Consultants, and Enam Securities were the lead managers to the issue.