IndusInd Bank Ltd. has picked up a 2.58 percent stake in microfinance firm Satin Creditcare Network Ltd., by converting debentures which the private bank had subscribed earlier.
The stake purchase in Satin Creditcare, which was first announced in 2017, comes days ahead the merger of Bharat Financial Inclusion with IndusInd Bank on July 4.
IndusInd Bank has been allotted 13,43,283 equity shares of Satin Creditcare, representing 2.58 percent stake in the microfinance firm. These shares are allotted against 13,43,283 optionally convertible cumulative redeemable preferential shares which were allotted to IndusInd Bank in December 2017 at Rs 335 each.
A November 2017 news report had said the bank and others would be investing Rs 205 crore into the company to support its growth.
The stake in Satin Creditcare held by Trishashna Holdings & Investments, a promoter group company, has also gone up to 27.04 percent, after allotment of 17,91,044 shares on Friday. They were given against an equal amount of fully convertible warrants, which was allotted in December 2017 at Rs 335 each.
A fourth of this money was paid by Trishashna Holdings on allotment of the fully convertible warrants, while the remaining 75 percent is paid now, the statement said.
On Friday, Satin Creditcare shares rose 2.81 percent to Rs 296.80 on the BSE while those of IndusInd Bank fell 2.85 percent to Rs 1,410.10. The benchmark Sensex shed 0.48 percent to end the day at 39,394.64 points.
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