IndusInd Bank shares rose more than 4% on Monday, as the private sector lender denied reports of a proposed merger. Kotak Mahindra Bank is exploring an acquisition of IndusInd Bank, in a move that would create the country’s eighth-largest financial firm by assets, the Bloomberg news agency reported Sunday, citing people with knowledge of the matter. In a statement issued late Sunday, IndusInd Bank said it “denies the rumor in certain media reports about a proposed merger and considers it malicious, false and unfounded.”
Shares of IndusInd Bank, the country’s seventh-largest lender by market value, rose as much as 4.21 percent to Rs 633 each on the BSE, having opened stronger at Rs 615.25 compared to its previous close. of Rs 607.45.
Kotak Mahindra founder and CEO Uday Kotak is looking into the possibility of a full share takeover, Bloomberg reported, citing one of the people. Uday Kotak and the Hinduja family had had initial talks on the proposal in which the founders of IndusInd Bank could retain a stake in the lender after a deal, according to the Bloomberg report.
Mauritius-based IndusInd International Holdings, the promoter of Indusind Bank, denied the report, calling it a “rumor.” IndusInd International Holdings Limited (IIHL) said it considers the report “malicious, false and without foundation.” The IIHL is promoted by Hindujas and other NRIs.
The promoter reiterated its full support for IndusInd Bank “now and forever.” “The promoter would continue to support Indusind Bank’s initiatives to grow inorganic, should such opportunities emerge on the horizon in the future … The promoter reaffirms its unconditional support for Indusind Bank,” IIHL said.
As of 10:10 a.m., IndusInd Bank shares were up 2.47 percent to Rs 622.45 each on the stock market, outperforming the benchmark S&P BSE Sensex index, which was down 0.15 percent amid a hectic trade.
.
