ING Vysya Bank Raises Rs 970 Cr Through QIP

Private sector lender ING Vysya Bank, in which the Dutch financial major ING group holds 43.35 per cent stake, has raised Rs 970 crore through a qualified institutional placement and a preferential allotment to the promoters. The issue saw the banks raise Rs 513 crore from qualified institutional buyers, which also included a domestic private equity firm, by selling 10 per cent stake. The rest Rs 457 crore were raised through a preferential allotment to its Amsterdam-headquartered parent ING Group, which has maintained its stake after the issue.

Enam Securities, IDFC Capital and JM Financial Consultants were managers to the issue. The share price of ING Vysya closed at a discount to its QIP price at Rs 325 on Friday, down 1.34 per cent.

ING Vysya’s chief financial officer Jayant Mehrotra told CNBC that the bank would be well-capitalised for the next two years with this issue. According to Mehrotra, in addition to mutual funds, FIIs and insurance companies, a domestic private equity fund had also participated in the issue. The bank had earlier attracted private equity interest, with ChrysCapital exiting profitable from its investment during late 2009.