HDFC Bank Launches Share Sale To Raise Up To Rs 15,500 Crore
HDFC Bank Ltd. today launched its share sale to raise up to Rs 15,500 crore.
India’s largest lender by market capitalisation launched a combination of qualified institutional placement and an American Depository Receipts issue, it said in an exchange filing. It fixed the floor price at Rs 2,179.1 apiece for the QIP. Each ADR will represent three equity shares.
Shares of the bank closed 1.41 percent lower at Rs 2,172.25 apiece ahead of the announcement.
HDFC Bank had announced in December its plans to mop up more than $3 billion (Rs 24,000 crore), of which nearly $1.25 billion (Rs 8,500 crore) came through a preferential placement to the parent HDFC Ltd. earlier this month. It issued 3.91 crore shares to the parent at Rs 2,174.09 apiece. The remaining capital is now being raised by issuing by issuing shares and ADRs.
The capital raise will support HDFC Bank’s current credit growth of 20 to 25 percent over the next few years and will improve its capital ratios required under Basel III norms, according to credit-rating firm Moody’s.