HDFC Bk to raise $1bn

The board of directors of HDFC Bank, which met today, approved a proposal to raise additional capital of Rs 4,200 crore or $1 billion, whichever is higher.

According to a release issued by the bank to the BSE today, the proposed equity issue will result in the reduction of the present shareholding of the promoter group, the HDFC Group, which is currently at 21.56%. "With a view to maintain the shareholding of the promoter group at or about 23% of the enhanced capital base, it has been proposed to offer to the promoter group, by way of preferential offer, 1,35,82,000 equity shares of Rs 10 each at an issue price of Rs 1,023.49 per share," the release added.

The balance amount of the proposed equity capital may be raised either as domestic public offering or as public or private offerings in one or more international markets.