HFC Bank: HDFC Bank Launches First Sale of Shares in Three Years

Mumbai: HDFC Bank, India's most valuable lender, on Monday evening launched a stock sale to local and US investors seeking to raise a total of Rs 15,500 crore to strengthen its base of capital to support its growth and expansion plans for the next few years.

The bank plans to sell shares at Rs 2,169.90 a piece – the closing stock price at the National Stock Exchange (NSE) on Monday. Simultaneously, the bank also plans to sell American Depository Receipts (ADR) of 1.9 crore to US investors as part of a first sale of shares over more than three years.

"This show will cost all night long and we should expect it to be fully sold tomorrow morning," said one person involved in the case. A few days ago, the bank raised Rs 8500 crore by issuing more than 3.9 crores on a preferential basis to its parent company, HDFC, initially to raise a crore of Rs 24 000 which was approved by the board of the bank in December 2017.

A transaction document consulted by ET said the bank could raise a total of Rs 3,750 crore, including a base size of Rs 2,000 crore, which means that RTS 9.750 crore could be raised by ADR. The bank's ADRs were trading at around $ 107 each Monday night.