The Hindu Business Line : HDFC Bank board nod for pref shares to promoters

Mumbai, March 1 The board of directors of HDFC Bank has approved the issue of preferential shares or warrants for Rs 4,008 crore to the promoters to maintain their stake at 23.28 per cent in the company.

This will make good the decrease in their holding to 19 per cent, after the merger of Centurion Bank of Punjab (CBoP) with HDFC Bank.

The board proposed to issue 2.62 crore shares at a price of Rs 1,530.13 per share on a preferential basis to the promoter companies —Housing Development Finance Corporation (HDFC) Ltd, HDFC Investments Ltd, HDFC Holdings Ltd and Home Loan Services India Private Ltd, the bank said in a filing to the BSE.

Mr Deepak Parekh, Chairman, HDFC, had earlier said that the company would have to raise close to Rs 3,900 crore in order to maintain its stake at 23.28 per cent.

Mr Keki Mistry, Managing Director, HDFC Ltd, had earlier said that this would not be difficult for the company. “We can raise this money in the normal course through internal accruals.”

The equity shares or other instruments such as warrants convertible into equity shares will be issued subject to SEBI approval.

The board on Friday also approved the share swap ratio of 1:29 (one share of HDFC Bank for every 29 shares of CBoP held) and the draft scheme of amalgamation and the merger agreement; and the increase the authorised share capital of the bank to Rs 550 crore from Rs 450 crore.

The board has convened an extraordinary general meeting of the members of the bank on March 27, 2008 to consider the above matters.

More Stories on : Preferential Allotments | HDFC Bank Ltd | Private Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
‘Debt waiver good for banks’

Farm loan waiver may fuel demand for consumer goods

HDFC Bank board nod for pref shares to promoters

SBT to open 10 more ATMs

LIC to offer non-life cover

‘Cost of SIDBI’s refinance will come down’

ICICI Bank opens branch in New York