HDFC Bank today hit markets to raise a whopping Rs 10,000 crore by issuing a mix of NYSE-listed American Depository Receipts (ADRs) and placement of India listed shares to institutional investors.
The bank aims to mop up around Rs 7,600 crore from foreign investors and Rs 2,400 crore from domestic investors, merchant bankers told PTI. This is largest follow-on offer by a private institution and comes within day of state-run Coal India mopping a record high of Rs 22,576 crore though an offer for sale.
Earlier in January, the government had allowed increasing foreign holding HDFC Bank, the country's most valuable lender. 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 September quarter.
When contacted a bank spokesman refused to comment beyond an earlier statement about shareholders' approval on June 25, 2014 to raise Rs 10,000 crore as and when market conditions permit.
Barclays, BofA-ML, Citigroup and JP Morgan among others are advising HDFC Bank on the deal. One of the merchant banking sources said HDFC Bank being the most valued lender, it has not had a road-show for the issue.
By market capitalisation, HDFC Bank trumps all other banks in the country including SBI and ICICI with over Rs 2.58 trillion
In December 2013, the RBI had prevented FIIs from holding more HDFC Bank stocks after their combined stake crossed 49 per cent.
Ahead of the issue, the bank counter closed 1.02 per cent higher at Rs 1,067.25 crore after hitting a 52-week high of Rs 1,099.70, taking its taking its m-cap to Rs 258,146.43 crore at close on BSE.
SBI counter closed down 2.3 per cent, while ICICI Bank lost 0.7 percent.
It may be noted that since late January, three domestic companies -- Reliance Industries, Exim Bank and Delhi International Airport (DIAL)-- have raised close to USD 3 billion in overseas debt, indicating the strong demand for Indian paper.
Last year, corporate India had mopped up a whopping USD 20 billion in forex debt, which was up 20 per cent higher than in 2013.
