ING Vysya Bank to raise Rs 350 cr capital

ING Vysya Bank is planning to raise Rs 350 crore as fresh capital through a qualified institutional placement to fund its growth and augment the capital adequacy ratio (CAR).

The Bangalore-based private sector bank, which is issuing 7.47 million equity shares, will seek shareholders’ approval at an extraordinary general body meeting on November 6.

The board, which met on Saturday, has also approved a preferential allotment of 6.07 million shares to ING Mauritius Holdings and ING Mauritius Investment. ING holds 43.86 per cent stake in ING Vysya Bank.

Read more in The Business standard article.

Hathway buys 39% in ING Vysya MF

Hathway Investments, a company owned by the Rajan Raheja group, has bought out ING Vysya Bank’s entire 39% stake in ING Vysya Mutual Fund for an undisclosed sum.

Following the deal, ING will hold 42.5% in the fund, to be renamed ING Mutual Fund, Hathway 39%, and existing Indian shareholder—Kirti Equities—will retain 18.5%. The asset management company’s (AMC) total assets under management as on March 31, ‘07, were close to Rs 3,630 crore.

For the year ended March ‘06, the AMC had reported a net loss of Rs 21 crore. This could have depressed the valuation of the fund house, which usually ranges from 4-6% of assets. Hathway, which earlier held a 25% stake in Franklin Templeton, is estimated to have pocketed around Rs 300 crore from the sale of its stake.

Read more in The Times of India article.