Mumbai, July 24 (IANS) IndusInd Bank on Friday said that the US-based hedge fund Route One Investment Company has received Reserve Bank of India's (RBI) approval to raise its stake to 10 per cent from its current stake of 4.96 per cent.
In a regulatory filing, the bank said that its board of directors in its meeting on July 5 granted its approval to the proposed acquisition of shares.
“Route One Investment Company LP, USA (ROIC) is an existing investor holding approximately 4.96 per cent of the issued and subscribed capital of the bank and the investor approached the Reserve Bank of India seeking a prior approval to increase their stake in the bank up to 10 per cent,” it said.
“RBI has forwarded the bank a copy of the letter addressed to ROIC, granting approval for increasing their shareholding up to 10 per cent of the paid-up voting equity capital of IndusInd Bank Limited,” it said.
Shares of IndusInd Bank rose on Friday on the back of the announcement. At 2.04 p.m., they were trading on the BSE at Rs 524.90, higher by Rs 10.95 or 2.13 per cent from its previous close.