HDFC Bank approves Rs.24,000 Cr from share sale

The top Indian banking and financial services company HDFC Bank today approved a mega-fundraising plan of Rs 24,000 crore to fund its expansion, by selling shares to domestic & international investors including a preferential issue to its parent company HDFC Ltd.

The fundraising plan of HDFC Bank was declared subsequent on its parent company Housing Dev Finance Corpn said that it has approved to raise Rs 13,000 cr, for its fundraising plans.

HDFC Bank said that out of the total sum of Rs 24,000 crore, an amount of Rs 8,500 shall be through the issuance of equity shares, of face value of Rs.2/equity share. The balance amount left after HDFC’s infusion will be raised through the issuance of equity share/ convertible securities/ qualified institutional placement/ American Depository Receipt/ Global Depository Receipt and so on. Following the announcement, shares of HDFC Bank hit an all-time high of Rs 1,905, rising 1.05%.

Shares of HDFC closed 0.5% lower, prior to the announcement, in comparison to the benchmark BSE Sensex that closed 0.7% higher.

Housing Development Finance Corporation Limited (HDFC) said on Tuesday that company will raise Rs 13,000 cr to infuse capital into its banking arm HDFC Bank Ltd., by selling shares mainly to subscribe to a preferential issue.  Upto Rs. 8500 cr of the funds raised will be utilized to subscribe to the preferential allotment. The mortgage lender is also considering the acquisition and resolution of stressed assets in the country’s real estate sector.

Shares of HDFC closed 0.5% lower, prior to the announcement, in comparison to the benchmark BSE Sensex that closed 0.7% higher.

Top companies that contribute market-cap gain in 2017

Reliance Industries, HDFC Bank Ltd, Maruti Suzuki (India)Ltd, Hindustan Unilever Ltd and Bharti Airtel Ltd are recognized as the top five companies that have contributed more than half of the gain in market capitalization (M-cap) recorded by S&P BSE Sensex companies so far in the calendar year 2017. The S&P BSE Sensex ended at 33,463 on Friday, and has rallied 26 percent or 6,836 points so far in 2017. By comparison, these five stocks surged between 56% and 72% during the period.  Total M-cap of Sensex companies increased by Rs 11.49 lakh crore to Rs 58.16 lakh crore. Of these gain, the aforesaid five companies accounted for 63%, or Rs 7.18 lakh crore gain during the period.