MUMBAI: HDFC Bank’s share surged as much as 2.7 per cent to a record high of Rs 1,888 on Friday.
Dealers indulged in hectic trading activity as reports that the bank may consider a fund-raising proposal by selling shares through QIP or ADRs among others. The country’s largest private sector lender by assets is also considering a preferential issue to parent HDFC.
HDFC Bank’s board is expected to meet next Tuesday to consider the fund-raising proposal, while the board of its banking arm, HDFC Bank, will meet on Wednesday to consider raising funds through a QIP, ADRs and a preferential issue to its parent entity. According to analysts, the proposed fund raise will help the bank explore merger opportunities, infuse capital in its health insurance business and acquire stressed assets within the real estate segment.
Meanwhile, as per news reports, a consortium of investors led by private equity firm KKR and GIC are in final stages of talks to acquire 5 per cent stake at an estimated value of up to $2 billion stake in HDFC Ltd.
Express couldn’t independently confirm the move. HDFC may use nearly half the funds raised to subscribe to the preferential allotment of its subsidiary HDFC Bank.