HDFC Bank to raise $688 m via ADRs

HDFC Bank will raise the entire Rs 2,810 crore (around $688 million) of its fresh public issue of equity through American Depository Receipts (ADRs). The bank is looking at raising Rs 4,200 crore (over $1 billion) of additional share capital, of which over a quarter will be raised through a preferential issuance to HDFC. The top three private sector banks — ICICI Bank, HDFC Bank and UTI Bank — are looking at raising around $7 billion in equity over the next couple of months.

ICICI Bank is looking at raising $5 billion, of which around half will be raised from the overseas market. It is likely to hit the market in the latter half of this month. UTI Bank is also looking at raising around $1 billion, of which around Rs 1,754 crore will be through a preferential issue to the promoters while the remaining Rs 2,326 crore will be through a global depository issue.

HDFC Bank is likely to hit the market before the end of July. The bank, according to sources, is likely to appoint Merrill Lynch and UBS as lead managers for the issue. A final decision will be taken in the next couple of weeks when it has to file under SEC guidelines.

Read more in The Economic Times article.