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HDFC Bank modifies share sale plan, prefers ADRs to raise funds

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HDFC Bank modifies share sale plan, prefers ADRs to raise funds

HDFC Bank modifies share sale plan, prefers ADRs to raise funds
HDFC Bank has modified its share sale plan in order to include more of American Depository Receipts (ADRs) than domestic offering, reported The Economic Times.
People familiar with the development told the paper that the bank changed the share sale plan on hopes that a positive US market would attract more investors without Indian registration as well as better pricing, ET reported on Wednesday.
“ADR was not a part of the original plan. But since the bank’s latest quarterly numbers are out which is mandatory requirement for an ADR and there is enough headroom to get more marque foreign investors, the bank is looking at one. In fact, around 80% of the total amount could be raised through an ADR,” a person aware of the matter was quoted by the paper.
The bank, last week raised Rs 8,500 crore by issuing more than 3.9 crore shares on preferential basis to its parent HDFC Ltd.
"The share allotment committee of the bank at its meeting held today has allotted 3,90,96,817 share to Housing Development Finance CorporationNSE 1.31 % Ltd at an issue price of Rs 2,174.09 per equity share aggregating to Rs 84,99,99,98,871.53," HDFC Bank said in a regulatory filing.
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