Business Daily from THE HINDU group of publications
Friday, May 18, 2007
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Business Daily from THE HINDU group of publications Friday, May 18, 2007 ePaper |
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Private Banks Markets - Stocks Money & Banking - Preferential Allotments
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Proposals Plans to make a preferential offer to the promoter group. To issue 13.58 million shares at Rs 1,023.49 per share to the HDFC Group.
Mumbai May 17 HDFC Bank plans to raise around Rs 4,200 crore from the equity markets ahead of the Basel-II guidelines. "Given the bank's strong positioning in each of its major franchises (retail, corporate and treasury), it is important that it is adequately capitalised to support growth plans," said a statement from HDFC Bank. The bank adds further incremental capital would also facilitate meeting the changing regulatory requirements such as the proposed capital adequacy framework (based on Basel-II accord) and the new capital market exposure norms. The board of HDFC Bank met on Thursday to decide on the issue, said a BSE announcement. The bank has said, "The above proposed equity issue will result in the reduction of the present shareholding of the promoter group, the HDFC Group, which is currently at 21.56 per cent. With a view to maintaining the shareholding of the promoter group at or about 23 per cent of the enhanced capital base, it is proposed to make a preferential offer to the promoter group." The bank will issue 13.58 million shares at Rs 1,023.49 per share to the promoter, HDFC Group. The balance amount of the proposed equity capital may be raised either through a domestic public offering or as public or private offerings in one or more international markets.
Stock options
The board has also decided to seek shareholders' approval to facilitate grant of 1.5 crore stock options to the employees of the bank. The bank's scrip closed at Rs 1,036.25 against the previous close of Rs 1, 033.9 on the BSE. In April, ICICI Bank announced its plans to raise Rs 20,000 crore through issue of equity to sustain its growth.
More Stories on : Private Banks | Stocks | Preferential Allotments | HDFC Bank Ltd
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