HDFC Bank seeks to raise $2.5 billion via share sale
Private sector lender HDFC Bank Ltd is looking to launch its equity share sale of up to $2.5 billion (around ₹15,000 crore) in a fortnight, while HDFC Asset Management Co. Ltd (HDFC AMC) will be filing its draft initial public offering (IPO) papers by next week, said three people aware of the developments.
In December, HDFC Bank said it is planning to raise up to ₹24,000 crore through a combination of preferential allotment and qualified institutional placement (QIP).
The bank said it will be raising nearly one-third (₹8,500 crore) of the sum from parent Housing Development Finance Corp. Ltd (HDFC).
“The bank will be launching its fund-raising very soon, likely around mid-March. They are waiting for regulatory approval, which should come this week,” said one of the people cited above, requesting anonymity as he is not authorized to speak to reporters.
According to the second person cited above, HDFC Bank’s equity fund-raising will be a mix of a domestic qualified institutional placement (QIP) and overseas fund-raising via American depositary receipts/shares (ADR/ADS).
MUMBAI:
“Like the last time it raised funds from the markets, the share sale this time, too, would be a mix of a QIP and overseas fund-raising. Majority of the fund-raising will be through the overseas share sale,” he said. He, too, spoke on condition of anonymity.
In February 2015, HDFC Bank raised ₹10,000 crore through a mix of qualified institutional placement and ADRs, with around ₹2,000 crore raised through the domestic QIP and the rest through an overseas share sale. “We don’t comment on market speculation/ rumours,” said a spokesperson for HDFC Bank in an email response to Mint’s queries.
Indian banks have been busy raising funds in the past 12 months, with several large qualified institutional placement offerings from both private sector and state-owned banks. Last year, State Bank of India (SBI) raised ₹15,000 crore through a qualified institutional placement, while private sector lenders Kotak Mahindra Bank raised ₹5,803 crore.
Another HDFC group firm— HDFC Asset Management Co. Ltd (HDFC AMC)—will be filing its so-called draft red herring prospectus for an IPO soon. HDFC AMC is a joint venture between mortgage lender HDFC and Standard Life Investments Ltd.