HDFC Bank to raise $1 billion

HDFC Bank Ltd has announced that the Board of Directors of the Bank at its meeting held on May 17, 2007, has considered and approved a proposal to raise additional share capital USD 1,000,000,000 or Rs 4,200 Crores, whichever is higher.

The above proposed equity issue will result in the reduction of the present shareholding of the promoter group viz the HDFC Group which is currently at 21.56%. With a view to maintain the shareholding of the promoter group at or about 23% of the enhanced capital base, it is proposed to offer to the promoter group by way of preferential offer, 1,35,82,000 equity shares of Rs 10 each to Housing Development Finance Corporation Ltd at an issue price of Rs 1023.49 per share, which is the price determined in accordance with the specified formula as per SEBI (Disclosure and Investor Protection) Guidelines 2000. The balance amount of the proposed equity capital may be raised either as domestic public offering or as public or private offerings in one or more international markets.

- To seek shareholders approval to facilitate grant of 1,50,00,000 stock options to the employees of the Bank.

Source : Equity Bulls

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