Largest private sector HDFC Bank is planning to raise up up to Rs 24,000 crore through a combination of preferential allotment and qualified institutional placement (QIP).
Largest private sector HDFC Bank is planning to raise up up to Rs 24,000 crore through a combination of preferential allotment and qualified institutional placement (QIP).
The bank in a notification to the stock exchange said that the board of directors has approved the fund raising plan which will shore up its capital and get the bank ready for the next phase of expansion.
HDFC Bank and its parent HDFC will be raising funds up to Rs 37,000 crore. HDFC Bank earlier had raised Rs 9800 crore in February 2015 through a mix of ADRs and a QIP.
About Rs 8500 crore will be raised through its parent Housing Development and Finance Corp Ltd . which will help it retain its 21% stake in the bank . The board of HDFC approved for a fund raising plan of Rs 13000 crore on December 19, 2017 part of which will be utilised to maintain its stake of 21% in HDFC Bank.
“Board of directors of the bank, at their meeting held on 20 December, 2017 have approved raising of funds aggregating up to Rs24,000 crore of which an amount up to a maximum of Rs8,500 crore shall be through a preferential issue to HDFC Ltd,” the notification stated. HDFC, India’s largest mortgage lender hold 21.01% stake in the HDFC Bank and will be infusing funds in the bank to maintain its current shareholding.
The balance amount will be raising by the bank through “issuance of equity shares or depository receipts pursuant to a QIP/American Depository Receipt/ Global Depository Receipt (GDR) program,” the notification added.
The bank did not divulge plans on how it plans to use the funds but it is planning a aggressive growth of its corporate book . The lender will be convening an extra-ordinary general meeting to seek approval of shareholders for its fund raising program on January 19, 2019.
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 "HDFC Bank board gives nod to raise up to Rs 24,000 crore")
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