The country’s largest lender by market value HDFC Bank today raised Rs 9,880 crore in the largest share sale in the secondary market by a private entity to overseas and domestic investors through a mix of qualified institutional placement and American Depository Shares.
Merchant bankers said the issue has been successfully closed and the final pricing is expected shortly.
According to merchant bankers who include Barclays, JM Financial, Citi, JP Morgan and BofA-ML, the bank opened the QIP issue first and the ADR was launched a few hours later.
The bank has planned to raise Rs 2,400 crore from QIP and the rest from ADRs, but sources said the composition got changed after the sale began.
The HDFC Bank stock ended up 0.94 per cent or Rs 10 at Rs 1,077.25 on the BSE.
This is the largest share sale by a private sector entity and the second largest fund-raising by selling shares in the secondary market after the bumper Rs 22,500-crore Coal India issue last week by the government.
The Mumbai-based bank had opened the sale process without a roadshow late yesterday.
Last month, the government had allowed increasing the foreign holding in HDFC Bank. The application was pending for over a year.
Parent HDFC holds 22.47 per cent in the bank, FIIs 33.75 per cent, ADRs/GDRs 16.84 per cent and the rest is held by others, as of September quarter.
With over Rs 2.6 lakh crore market capitalisation, HDFC Bank trumps all other lenders in the country including SBI and ICICI.
In December 2013, the Reserve Bank had prevented FIIs from holding more HDFC Bank stocks after their combined stake crossed 49 per cent.