HDFC Bank sets Rs 1,061 as floor price for share offer
HDFC Bank is expected to raise at least Rs 2,000 cr through the QIP offering and Rs 8,500 cr through ADR offering, it said.
By ET Bureau |
MUMBAI: HDFC Bank has raised around Rs 10,500 crore through simultaneous share sales to institutional investors on Indian and US exchanges. India’s second-largest private sector bank raised Rs 2,000 core by issuing shares to qualified institutional investors (QIPs) at Rs 1,067 per share, virtually the same as Wednesday’s closing price on BSE. It also raised around Rs 8,500 crore by selling American Depository Receipts (ADRs) at $57.76 (Rs 3,556) per unit. The bank had set a floor price of Rs 1,061.84 per share for both to the QIP and the issue of ADR. One ADR is equal to three shares. On Thursday, HDFC Bank share closed at of Rs 1,084.45 on BSE.
“The domestic issue was oversubscribed four times,’’ said a merchant banker. “It also received $1.27 billion proceeds through the ADR offering,’’ he said.
HDFC Bank is expected to raise at least Rs 2,000 crore through the QIP offering and Rs 8,500 crore through ADR offering, it said in an announcement to BSE. “The ‘Relevant Date’ for the purpose of the ADR offering, in accordance with the Depository Receipts Scheme, 2014 (the “DR Scheme”) is February 4, 2015, and accordingly, the floor price in respect of the ADR Offering, based on the provisions of the DR Scheme isRs 1,061.84 per equity share,’’ the bank said, in an exchange filing.
The share sale is among the largest by a private sector entity and marks the second large-scale fund-raising in the secondary market in the January-March quarter after the bumper Rs 22,500 crore Coal India issue last week by the government.
DSP Merrill Lynch, JM Financial, Morgan Stanley, Goldman Sachs, UBS Securities, Credit Suisse, JP Morgan, Barclays, Nomura, Merrill Lynch Pierce, Fenner & Smith are the lead managers to the issue.
“The fresh issue of shares would lead to a shareholder dilution of less than 4%,’’ said a senior banker. The oldest mortgage lender and promoter of HDFC Bank, HDFC, which holds a 22.47% stake in the bank, will see a dilution of less than 1% on account of the fresh capital infusion. “The bank’s offer document has a clause that permits a follow-on offer to existing shareholder and dominant shareholder,’’ said Keki Mistry, vice-chairman and chief executive officer, HDFC. About a week ago, the government had allowed increase in FII holding in HDFC Bank, whose application with the FIPB board was pending for over a year.
Parent HDFC holds 22.47% in the bank, FIIs 33.75%, ADRs/GDRs account for 16.84% while the rest is held by others, as of September 30, 2014. “If the preference issue is done at the right price, we would participate,’’ said Mistry.
“The domestic issue was oversubscribed four times,’’ said a merchant banker. “It also received $1.27 billion proceeds through the ADR offering,’’ he said.
HDFC Bank is expected to raise at least Rs 2,000 crore through the QIP offering and Rs 8,500 crore through ADR offering, it said in an announcement to BSE. “The ‘Relevant Date’ for the purpose of the ADR offering, in accordance with the Depository Receipts Scheme, 2014 (the “DR Scheme”) is February 4, 2015, and accordingly, the floor price in respect of the ADR Offering, based on the provisions of the DR Scheme isRs 1,061.84 per equity share,’’ the bank said, in an exchange filing.
The share sale is among the largest by a private sector entity and marks the second large-scale fund-raising in the secondary market in the January-March quarter after the bumper Rs 22,500 crore Coal India issue last week by the government.
DSP Merrill Lynch, JM Financial, Morgan Stanley, Goldman Sachs, UBS Securities, Credit Suisse, JP Morgan, Barclays, Nomura, Merrill Lynch Pierce, Fenner & Smith are the lead managers to the issue.
“The fresh issue of shares would lead to a shareholder dilution of less than 4%,’’ said a senior banker. The oldest mortgage lender and promoter of HDFC Bank, HDFC, which holds a 22.47% stake in the bank, will see a dilution of less than 1% on account of the fresh capital infusion. “The bank’s offer document has a clause that permits a follow-on offer to existing shareholder and dominant shareholder,’’ said Keki Mistry, vice-chairman and chief executive officer, HDFC. About a week ago, the government had allowed increase in FII holding in HDFC Bank, whose application with the FIPB board was pending for over a year.
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Parent HDFC holds 22.47% in the bank, FIIs 33.75%, ADRs/GDRs account for 16.84% while the rest is held by others, as of September 30, 2014. “If the preference issue is done at the right price, we would participate,’’ said Mistry.
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