MUMBAI: HDFC Bank has raised $607 million through an American Depository Share (ADS) issue. In the next couple of days, the bank will raise an additional 15% through a green-shoe option.
HDFC Bank has priced the ADS issue at $92.10. Each ADS represents three shares of the bank. At the cut-off price of $92.10, it translates into Rs 1,235.06 per equity share, a premium to the local market price. The bank issued 65.94 lakh ADS for the issue. According to sources, the ADS issue has been oversubscribed more than three times. The ADS price opened at $91.8 on Wednesday at the New York Stock Exchange, down from its previous close of $92.26 on Tuesday. In the BSE the scrip closed at Rs 1,194.05 on Wednesday, down 0.45% from Tuesday’s close of Rs 1,199.6.
HDFC Bank had last raised equity through an ADS issue during the last quarter of 2004-05. It had then raised $300 million, including a $40-million oversubscription that was retained. Some of the bigger investors in the ADS issue included HSBC, Morgan Stanley, Fidelity, Alliance Capital and also some of the long-only hedge funds. Sources close said that HSBC and Morgan Stanley have bid for bigger amounts. Though the issue saw investments come in from across the world - the US, Asia and Europe, sources added that most of it was from the US. The issue also saw around five-six orders from the Middle East-based institutions, including some government institutions. The ICICI Bank issue also saw some major orders from these institutions. In the ADS market, institutions backed by the Dubai government have put in around $1 billion. The issue also saw orders from institutions backed by the Qatar and Abu Dabhi government.
“India’s domestic growth story is one of the leading global investment themes of the decade,” DSP Merrill Lynch chairman Hemendra Kothari said. Merrill Lynch has raised close to $10 billion within a space of one month for issues, including DLF, Sterlite, ICICI Bank and HDFC.
HDFC Bank will raise another $91 million through an additional issue of 9.89 lakh ADS. This is likely to be done in the next couple of days. Merrill Lynch and UBS are the global co-ordinators for the issue while JP Morgan, Credit Suisse, Morgan Stanley and Normura Securities are the joint book runners for the issue. The bank will use the proceeds from the issue for its retail and corporate banking activities.
Some of the money will also be used for its overseas expansion plans.
Last month, ICICI Bank had raised $2.14 billion through an ADS issue. It has also completed its green-shoe option where it raised an additional $320 million. The bank had priced the issue at $49.25 per ADS, translating into a price of approximately Rs 1,002.5 per equity share, a premium over the domestic issue price. However, each ADS of ICICI Bank represented two equity shares of the bank. The issue was oversubscribed four times.
HDFC Bank has priced the ADS issue at $92.10. Each ADS represents three shares of the bank. At the cut-off price of $92.10, it translates into Rs 1,235.06 per equity share, a premium to the local market price. The bank issued 65.94 lakh ADS for the issue. According to sources, the ADS issue has been oversubscribed more than three times. The ADS price opened at $91.8 on Wednesday at the New York Stock Exchange, down from its previous close of $92.26 on Tuesday. In the BSE the scrip closed at Rs 1,194.05 on Wednesday, down 0.45% from Tuesday’s close of Rs 1,199.6.
HDFC Bank had last raised equity through an ADS issue during the last quarter of 2004-05. It had then raised $300 million, including a $40-million oversubscription that was retained. Some of the bigger investors in the ADS issue included HSBC, Morgan Stanley, Fidelity, Alliance Capital and also some of the long-only hedge funds. Sources close said that HSBC and Morgan Stanley have bid for bigger amounts. Though the issue saw investments come in from across the world - the US, Asia and Europe, sources added that most of it was from the US. The issue also saw around five-six orders from the Middle East-based institutions, including some government institutions. The ICICI Bank issue also saw some major orders from these institutions. In the ADS market, institutions backed by the Dubai government have put in around $1 billion. The issue also saw orders from institutions backed by the Qatar and Abu Dabhi government.
“India’s domestic growth story is one of the leading global investment themes of the decade,” DSP Merrill Lynch chairman Hemendra Kothari said. Merrill Lynch has raised close to $10 billion within a space of one month for issues, including DLF, Sterlite, ICICI Bank and HDFC.
HDFC Bank will raise another $91 million through an additional issue of 9.89 lakh ADS. This is likely to be done in the next couple of days. Merrill Lynch and UBS are the global co-ordinators for the issue while JP Morgan, Credit Suisse, Morgan Stanley and Normura Securities are the joint book runners for the issue. The bank will use the proceeds from the issue for its retail and corporate banking activities.
Some of the money will also be used for its overseas expansion plans.
Last month, ICICI Bank had raised $2.14 billion through an ADS issue. It has also completed its green-shoe option where it raised an additional $320 million. The bank had priced the issue at $49.25 per ADS, translating into a price of approximately Rs 1,002.5 per equity share, a premium over the domestic issue price. However, each ADS of ICICI Bank represented two equity shares of the bank. The issue was oversubscribed four times.