HDFC Bank Ltd clarifies on raising foreign funds

The Exchange had sought clarification from HDFC Bank Ltd with respect to news article appearing in The Economic Times on January 29, 2015 titled "HDFC Bank Gets Nod for Foreign Funds".

HDFC Bank Ltd has replied stating that the Bank had obtained the approval of the shareholders to raise additional capital up to Rs.10,000 crore through one or more domestic / international offerings vide special resolution passed at the Annual General Meeting held on June 25, 2014.

We understand from press releases that the Cabinet Committee on Economic Affairs has approved the Bank's proposal for maintaining the permissible foreign holding in the Bank up to 74% of the total paid up capital and for issuance of equity shares aggregating to an amount of Rs.10,000 crore to NRIs/Flls/FPIs subject to aggregate foreign shareholding not exceeding 74 percent of the post issue paid up capital of the Bank, pursuant to applications made by the Bank with the Foreign Investment Promotion Board (the "FIPB"). The Bank has not yet received a formal communication from FIPB in this regard.

The mode of capital raising, the timing and type of issuance, i.e. domestic or international will be decided by the Board of Directors of the Bank / Special Committee of the Board at an appropriate time subject to receipt of necessary approvals, market conditions and other considerations.

Shares of HDFC BANK LTD. was last trading in BSE at Rs.1067.25 as compared to the previous close of Rs. 1063.25. The total number of shares traded during the day was 113984 in over 8639 trades.

The stock hit an intraday high of Rs. 1080.5 and intraday low of 1057.15. The net turnover during the day was Rs. 121991413.

Source : Equity Bulls

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