India’s HDFC Bank has decided to raise INR240bn ($3.75bn) from share sale following its board of directors approval.
Of the total amount about INR85bn shall be raised through issuance of equity shares pursuant to a preferential issue to Housing Development Finance Corporation Limited, its parent company.
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The remaining amount will be raised through issuance of equity shares, convertible securities, and depository receipts pursuant to a Qualified Institutions Placement (QIR) / American Depositary Receipts (ADR) and Global Depository Receipt (GDR) programme.
In a statement to National Stocks Exchange of India, the lender said that the decision complies with Regulation 30 and other applicable provisions of the Securities and Exchange Board of India listing Obligations and Disclosure Requirements) Regulations, 2015.
HDFC Bank has also convened an extra-ordinary general meeting on 19 January 2018 in Mumbai to take shareholder approval for proposals.
The board of directors of the company has also formed a special committee to decide the terms and conditions for the proposal.
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By GlobalDataThe initiative follows the fund-raising initiative by its parent company HDFC, which aims to raise INR130bn.
