HDFC Bank To Mop Up Rs 4,200 Crore

Banks are on a fund raising spree for now. HDFC Bank plans to raise Rs 4,200 crore via equity issue. The fund will be raised through preferential and follow on public issue. It will issue 13.58 million preferential shares to promoter HDFC Group at Rs 1,023/share. The preferential issue to promoters will help the bank raise Rs 1,390 crore and the rest Rs 2,810 crore from local and international investors.The fast growing Indian economy is calling for fast funds and the banking industry is looking at all possible ways to raise cheap funds for expansion after ICICI, SBI and HDFC Bank have announced big buck plans.The share holding pattern for HDFC Bank is likely to change marginally post-preferential issue. The promoter HDFC Group stake will increase to 23 per cent from current 21.5 per cent.