HDFC Bank Ltd, India’s second-biggest lender by assets, said it would raise up to 240 billion rupees ($3.75 billion) to fund its growth by selling shares to domestic and international investors including a preferential issue to its parent HDFC Ltd.
HDFC Bank, the most valuable in the sector with a market capitalisation of more than $76 billion, said its board approved the fundraising plan on Wednesday.
As part of the planned fundraising, HDFC Bank will issue up to 85 billion rupees worth of shares to HDFC Ltd on a preferential basis, while the remainder will be raised via modes including American Depositary Receipts and a share sale in India to institutional investors.