HDFC Bank raises R10,000 crore from QIP, ADR offering

Tata Motors has announced a Rs 7,500 crore share sale, while State Bank of India plans to raise up to Rs 15,000 crore.

By: ENS Economic Bureau | Mumbai | Published: February 6, 2015 1:44 am

HDFC Bank has raised Rs 10,000 crore through a domestic equity offer and an American Depository Receipt (ADR) issue in the US.

As per the term sheet of the issue, the size of the qualified institutional placement (QIP) was Rs 1,500 crore with an option to raise up to Rs 2,000 crore and dilution in the bank’s equity through the QIP was 0.58 per cent to 0.77 per cent.

The shares were offered at the price band of Rs 1,057 to Rs 1,067 a share. The bank also offered 22 million ADRs in the US on Thursday, raising another Rs 8,000 crore.

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In a stock exchange filing, the bank said its special committee has approved the issue price of Rs 1,067 per equity share to be allotted to eligible qualified institutional buyers. The $1.27 billion ADR offering, which is the biggest US share sale by an Indian company since 2009, was priced at $56.76 per ADR.

Meanwhile, Tata Motors has announced a Rs 7,500 crore share sale, while State Bank of India plans to raise up to Rs 15,000 crore.

With this sale, HDFC Bank will be one of the best capitalised lenders in the country. HDFC Bank had a capital adequacy ratio of 15.7 per cent at the end of September and a gross bad-loan ratio of 1 per cent.

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