HDFC Bank has opened a qualified institutional placement (QIP) of equity shares to raise around ₹5,000 crore, with an option to upsize depending on investor demand. The issue floor price has been set at a small premium to the recent volume-weighted average price. The bank said proceeds will be used to augment Tier-1 capital to support future asset growth and maintain comfortable capital adequacy ratios post the merger with HDFC Ltd. The QIP is open to domestic and foreign institutional investors and will close in the coming days.
HDFC Bank is shoring up its equity capital so it can keep growing its loan book while staying well above regulatory capital requirements after the large merger.
*Business event analysis, not a stock prediction.
Private banks are tapping markets to fund balance-sheet growth amid robust credit demand.