HDFC Bank, the second-largest public-sector lender in the country, said on Wednesday that it would raise up to Rs 24,000 crore through preferential issue of shares to its promoter Housing Development Finance Corporation (HDFC) and also share issuance and depository receipts.
“The board of directors of the bank, at their meeting held on December 20, 2017, approved raising of funds aggregating up to Rs 24,000 crore,” it said in a regulatory filing to the stock exchanges on Wednesday.
Of this, up to Rs 8,500 crore will be raised through issuance of shares of face value of Rs 2 each of the bank pursuant to a preferential issue to Housing Development Finance Corporation (HDFC). The bank will raise the remaining amount, about Rs 15,500 crore, through issuance of shares, convertible securities, depository receipts pursuant to a qualified institutional placement/American Depository Receipts/Global Depository Receipts, the statement added.
“Further, for the purpose of giving effect to above resolutions, the Board authorised a special committee of Board to decide, inter-alia, the terms and conditions of the proposed issues,” the statement noted.
HDFC Bank will hold an extra-ordinary general meeting on January 19 to seek shareholders’ approval. On
Tuesday, mortgage lender HDFC had announced a Rs 13,000-crore fund-raising plan. While bulk of this will be used to maintain its stake in the bank at 21 per cent in an upcoming fund-raising round, part of the money will be used to enter new segments like stressed assets and health insurance.
HDFC had not participated in the Rs 9,800-crore qualified institutional placement (QIP) issue of HDFC Bank in February 2015, resulting in its shareholding coming down to 21.01 per cent from 24 per cent then.