HDFC Bank to raise Rs 10,000 crore this week via QIPs and ADRs: Sources

 HDFC Bank, India’s largest private sector lender by market capitalisation, is set to raise Rs 10,000 crore sometime this week through a combination of qualified institutional placements (QIPs) in the domestic market and a follow-on  offering of American Depository Receipts (ADRs) in the US, two people familiar with the proposal told ET.

A successful issue would create a record of sorts with Indian companies raising more than Rs 32,000 crore in just a week. Last week, the government raised Rs 22,500 crore by selling a 10% stake in Coal India Limited as part of its disinvestment programme

On Monday, HDFC BankBSE -1.76 % rose marginally to close at Rs 1,082.30 on the Bombay Stock Exchange. Is there that much appetite for Indian paper in the market? Yes, seems to be the answer.”Though a substantial portion of the Coal India issue was subscribed by state-run financial institutions, foreign investors are extremely bullish to invest in quality Indian companies at the right price,” said the managing director of a leading foreign bank’s local unit, not wanting to be named. He’s not part of the HDFC Bank transaction.

This would possibly be one of the largest follow-on offerings from a private sector institution,” he said. HDFC Bank is looking to enter the market at the earliest so that its plans are not complicated by the remainder of the government’s fund-raising plan for the fiscal year. Given current indications,
the government may launch another share sale any time this week or the next.”The government is fully ready to launch a 5% share sale in Power Finance Corp and Rural Electrification Co ..

Source : Economic Times


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