IndusInd Bank pick up 2.6% in microlender Satin Creditcare

Private sector lender IndusInd Bank has picked up a 2.58 percent stake in Satin Creditcare Network, one of the biggest microlenders, by converting debentures which the private lender had subscribed earlier. The stake buys in Satin, which was first announced in 2017, comes days ahead of the merger of Bharat Financial Inclusion with IndusInd Bank on July 4.

The bank has been allotted 13,43,283 equity shares, representing 2.58 percent stake in Satin Creditcare, the bank said in a statement Friday. These shares are allotted against 13,43,283 optionally convertible cumulative redeemable preferential shares which were allotted to IndusInd 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 held by Trishashna Holdings & Investments, a promoter group company, has also gone up to 27.04 percent, after allotting 17,91,044 shares on Friday, the statement said, adding 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 the allotment of the fully convertible warrants, while the remaining 75 percent is paid now, the statement said. The Satin scrip rose 2.81 percent to Rs 296.80 on BSE, as against a 0.48 percent correction in the benchmark.