NEW DELHI : The country’s second largest private lender HDFC Bank is likely to raise Rs 10,000 crore from the market, especially overseas, in this month.
The mode of capital raising, the timing and type of issuance, that is domestic or international will be decided by the board of the bank, sources said.
The decision of board or special committee of the board is expected in the next few days, sources said.
Following all regulatory approvals and other clearances, the issue is likely to hit the market during the month, they added.
Last month, the Cabinet Committee on Economic Affairs (CCEA) cleared a proposal of HDFC Bank to raise Rs 10,000 crore from foreign investors subject to limit of FII ceiling not breaching 74 per cent.
Total foreign investment in HDFC Bank was 73.39 per cent at the end of June 2014. It had come down to 73.2 per cent at the end of September.
The funds would be raised by issuing shares to non- resident Indians or FIIs or foreign portfolio investors subjected to aggregate foreign shareholding not exceeding 74 per cent of the post issue paid up capital, an official statement had said.
The approval would result in foreign investment of Rs 10,000 crore (approximately) in the country, it had said.
As per the norms, FIPB can only take up FDI proposals up to Rs 1,200 crore. Beyond that, they are sent to CCEA for clearance
In December, the Foreign Investment Promotion Board cleared the HDFC Bank proposal for expanding its equity base by up to Rs 10,000 crore.
Earlier, in November, FIPB had cleared the long-pending proposal of HDFC Bank to hike foreign holding to 74 per cent.
Banks can have up to 49 per cent foreign investment without regulatory approval but require approval from RBI and the FIPB if they want to increase the foreign investment limit to 74 per cent. (AGENCIES)
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