Deutsche acquires stake in HDFC Bank for Rs713 crore
By Our Banking Bureau | 11 Mar 2005
Mumbai: Deutsche Securities an FII belonging to the Deutsche Bank group — has acquired 4.05 per cent stake in HDFC Bank for Rs714 crore. Under the present norms laid down by the Reserve Bank of India (RBI), a foreign bank with branches in India is permitted to hold up to 5 per cent stake in an Indian private bank.
The bank bought 1.16 crore shares at Rs615 per share in a block deal on the Bombay Stock Exchange from Singapore-based JP Morgan Partners' (formerly the Chase Group) India private equity fund (Mauritius). DSP Merrill Lynch brokered the deal.
The HDFC Bank scrip ended the day on the BSE at Rs 615.10 after rising to Rs 629.95. On closing, it lost 0.51 per cent against its previous close of Rs618. The total volume at the HDFC Bank counter on the BSE stood at 720 crore.
HDFC Bank recently raised around $300 million through American depository receipts (ADRs) to support the bank's future growth. Following the ADS, the promoter's holding of Housing Development Finance Corporations (HDFC) came down to around 22 per cent from 24.08 per cent.