IndusInd Bank denies reports of QIP plan, calls speculation inaccurate

Shares of IndusInd Bank gained 3% on Friday, November 21, after the lender issued a clarification denying reports of a potential capital raise.

The bank said the claims were "speculative and factually inaccurate," adding that it has held no such discussions.

The clarification came after media reports suggested that IndusInd Bank had begun groundwork for a $1 billion equity raise and was evaluating options including a QIP or a preferential issue. The bank has dismissed these reports outright.

The report added that Citi, which has advised IndusInd Bank several times earlier, is understood to be working with the bank on the proposed capital raise.

While the exact timelines are still unclear, the report said the bank aims to complete the process within the next one to two months, possibly by January end.

A banker said the bank will not raise capital below book value and, given the recent appreciation in its stock price, the fundraise could take place slightly above book value.