HDFC raises 698 mn US dollars from sale of ADS

Mumbai, July 18 (UNI) As part of its US one billion dollars capital raising programme, HDFC bank has raised USD 698 million from the sale of 6.5 million American Depository Shares (ADS) in US, which will be used to fund its corporate expansion plans, the bank informed BSE today.

HDFC has priced the ADS at 92.10 USD each, which is equal to three equity shares of the bank.

The bank, in a statement, said the underwriters of the offering will have the right to purchase upto an additional 989,176 ADSs at the same price by way of green shoe option.

It is learned that the underwriters had exercised this option to raise an additional USD 91 million.

HDFC's capital raising exercise has come close to similar efforts from many Indian corporates including country's largest private lender ICICI Bank, which recently raised nearly USD 5 billion from ADS and through domestic issues.

The bank's shareholders had extended approval to raise equity capital of USD 1 billion (Rs 4,200 crore) during the quarter ended June 30, 2007.

HDFC Bank's scrip ended down by Rs 5.55 at Rs 1,194.05 at the Bombay Stock Exchange today from the previous close of Rs 1,199.60.

UNI