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HDFC raises $260 M through ADR
By siliconindia staff writer
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Friday, 21 January 2005, 20:30 IST
MUMBAI: IndiaÂ’s third largest private bank HDFC Bank Ltd. has raised US$260 million through the American Depositary Receipts, sources said today
The offering, which was mostly bought by U.S. investors, has a greenshoe option to raise another $40 million, sources added.
The proceeds will be used to fund growth plans.
Many investors are keen to tap India's growing bank market as the country's emerging middle class becomes wealthier and takes out more mortgages and car loans.
Last August, HDFC said it expects annual earnings growth of 25 to 30 percent for the next three years.
The offer book was three times covered, with 55 percent of the investors coming from the U.S., sources said. Asia accounted for 15 percent of investors, with U.S. retail (20 percent) and European (10 percent) buying the rest.
The ADRs were priced at $39.26 each, a 12.5 percent premium to the ordinary shares and the same price at which they closed in New York Stock Exchange trading Thursday.