HDFC Bank picks up $1.27 bn from ADRs
6 Feb 2015 1:21 AM GMT
HDFC Bank on Thursday raised about Rs 10,000 crore by selling American Depository Receipts (ADRs) and India-listed shares to qualified institutional investors in the largest follow-on offer by a private sector firm. As per an US Securities and Exchange Commission (SEC) filing, the company has raised $1,270.72 million (about Rs 8,000 crore) by issuing 22 million ADS to global investors.
The bank had okayed a $57.76 issue price per ADR to eligible investors in the ADR offering.
Besides, the bank has raised about Rs 2,000 crore from a Qualified Institutional Placement (QIP) in the domestic market. The issue price for QIP was Rs 1,067 per share to be allotted to eligible qualified institutional buyers. “...we intend to use the net proceeds of the (ADR) offering, together with the net proceeds of the QIP of approximately Rs 1,984.99 crore for meeting capital requirements in accordance with the capital adequacy norms and ensuring adequate capital to support growth and expansion,” the filing said.
The bank would use proceeds for enhancing solvency and capital adequacy ratio and general corporate purposes. Last month, the government had allowed increasing foreign holding in HDFC Bank. The application was pending for over a year. Parent HDFC holds 22.47 per cent in the bank, FIIs 33.75 per cent, ADRs/GDRs 16.84 per cent and the rest is held by others, as of the September quarter.
With over Rs 2.6 trillion market capitalisation, HDFC Bank trumps all other lenders in the country including SBI and ICICI. With the twin share sale, the FII limit in the bank would hit regulatory cap of 74 per cent. HDFC Bank’s scrip settled at Rs 1,077.25, a gain of 0.94 per cent, on the BSE on Thursday.
The bank had okayed a $57.76 issue price per ADR to eligible investors in the ADR offering.
Besides, the bank has raised about Rs 2,000 crore from a Qualified Institutional Placement (QIP) in the domestic market. The issue price for QIP was Rs 1,067 per share to be allotted to eligible qualified institutional buyers. “...we intend to use the net proceeds of the (ADR) offering, together with the net proceeds of the QIP of approximately Rs 1,984.99 crore for meeting capital requirements in accordance with the capital adequacy norms and ensuring adequate capital to support growth and expansion,” the filing said.
The bank would use proceeds for enhancing solvency and capital adequacy ratio and general corporate purposes. Last month, the government had allowed increasing foreign holding in HDFC Bank. The application was pending for over a year. Parent HDFC holds 22.47 per cent in the bank, FIIs 33.75 per cent, ADRs/GDRs 16.84 per cent and the rest is held by others, as of the September quarter.
With over Rs 2.6 trillion market capitalisation, HDFC Bank trumps all other lenders in the country including SBI and ICICI. With the twin share sale, the FII limit in the bank would hit regulatory cap of 74 per cent. HDFC Bank’s scrip settled at Rs 1,077.25, a gain of 0.94 per cent, on the BSE on Thursday.
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