HDFC Bank readying for Rs10,000-cr share sale soon

03 Feb 2015

HDFC Bank Ltd is expected to sell shares worth up to Rs10,000 crore ($1.6 billion) as early as this week, with an offering that will include overseas and domestic stock, according to a Reuters report citing sources with direct knowledge of the matter.

India's largest lender by market capitalisation, which is also listed in New York, last week received government approval for the share sale on the condition that its foreign ownership should not exceed 74 per cent.

HDFC Bank has said it does not have any immediate capital requirement, but the share sale will help it build a buffer as credit growth picks up with an expected recovery in the economy.

Nine investment banks including Bank of America Merrill Lynch, JPMorgan and Morgan Stanley are set to manage the share sale, said the sources.