Indian lender HDFC’s U.S. share sale to raise about $1.81 billion

A private security guard moves past a signboard of a HDFC Bank automated teller machine (ATM) in New Delhi, India, October 20, 2016. REUTERS/Adnan Abidi/Files

(Reuters) – HDFC Bank Ltd, India’s second-biggest lender by assets, on Tuesday said its U.S. public offering of 17.5 million American depository shares (ADS) was priced at $104 each, raising about $1.81 billion.

HDFC’s qualified institutions placement (QIP) of 12.8 million equity shares in India was also priced at Rs. 2,160 per equity share, which is expected to raise about Rs. 27.61 billion, the bank said in a filing.

Proceeds from the ADSs offering and the QIP are expected to be used to strengthen the bank’s capital structure and to support growth and expansion, the bank said.

With its focus on retail clients and a lower bad-loan ratio, HDFC Bank is an investor favourite at a time when India’s banking sector has been plagued by a record $150 billion in non-performing loans.

The bank last raised 97.66 billion rupees of equity capital in 2015 by selling shares in the Indian and American markets.

Bank of America Merrill Lynch, Credit Suisse, J.P. Morgan and Morgan Stanley are advising on the American as well as the Indian share sale of HDFC Bank.



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