HDFC Bank launches Rs10,000 share float; fixes floor for QIP issue at Rs1,061.84

HDFC Bank on Wednesday launched a Rs10,000-crore share float through NYSE-listed American Depository Receipts (ADRs) and a partial placement of India-listed shares to institutional investors.

The majority of the mop up, ie, around Rs7,600 crore will come from foreign investors and the remaining Rs2,400 crore from domestic investors.

HDFC Bank has fixed the floor price for the qualified institutional placement issue at Rs1,061.84.

"The 'Relevant Date' for the purpose of the ADR offering, in accordance with the Depository Receipts Scheme, 2014 (the ''DR Scheme'') is February 4, 2015 and accordingly the floor price in respect of the ADR Offering, based on the provisions of the DR Scheme is Rs1,061.84 per equity share," HDFC Bank said in a stock market filing.

Morgan Stanley, Credit Suisse, JPMorgan and Bank of America Merrill Lynch (BofAML) are reported to have raised roughly Rs7,600 crore from the sale of HDFC Bank shares to foreign investors. Barclays, Bank of America Merrill Lynch, JPMorgan and Citibank will team up with JM Financial to sell the Rs2,400 crore worth of shares to local institutional investors, the report added.

The government had, last week, allowed HDFC Bank to increase its foreign holding after holding up its application with the FIPB board for over a year.

Parent HDFC holds 22.47 per cent in the bank, FIIs 33.75 per cent, ADRs/GDRs 16.84 per cent (one ADR represents three domestic shares of HDFC Bank) and the rest is held by others as of September quarter.

Shares of HDFC Bank were hovering around Rs1,076.60 on the BSE in early trade on Thursday, while the ADR jumped 2 per cent to $57.76 overnight.

The largest domestic float by a private institution that comes within days of state-run Coal India mopping up a record Rs22,576 crore though an offer for sale, is unlikely to find much support from domestic institutions.