Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel
July 20, 2001
|
|
|
|
|
|
||
|
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Wedding | Women Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel |
||
|
|
||
|
Home >
Money > Reuters > Report July 20, 2001 |
Feedback
|
|
|
HDFC Bank prices ADS at $13.83India's second largest private bank, HDFC Bank, priced its American depositary shares at $13.83 per share, a source said on Friday. The share will be listed on the New York Stock Exchange later in the day. In a filing with the US Securities and Exchange Commission earlier this week, the bank said it plans to offer 11,169,025 ADS, or about 33.5 million shares, with each ADS representing three shares. The pricing is below market expectations of $14-$16. Analysts had expected the price to be set at a 5-10 per cent premium to the local price. The share closed on the Bombay Stock Exchange on Friday at Rs 225.10. HDFC Bank has now become the second Indian bank to list in the United States. In March 2000, ICICI Bank, India's largest private bank, made its debut on the NYSE. In June, the Indian government allowed HDFC Bank, founded by the country's largest mortgage firm Housing Development Finance Corporation, to make offerings in the US. HDFC holds a 28.1 per cent stake in the bank. In its filing with US regulators, the bank estimated it could raise as much as $172.5 million from the offering, including the sale of all the underwriters' over-allotment of 1,675,354 ADS. The underwriters managing the initial public offering are Merrill Lynch & Co and Morgan Stanley. After the ADS issue, the total foreign direct investment in the bank will rise to 26.53 per cent from 20 per cent but will still be within the permitted foreign holding ceiling of 49 per cent. The bank, which is among the better performing in the sector due to its strong loan portfolio, is raising capital to fund future acquisitions and boost growth. The ratio of the bank's gross non-performing loans to total advances was 2 per cent for the year ended March 2001. This compares with an industry average of 12.8 per cent for the year ended March 2000. Consolidated banking sector data are not yet available for the last financial year.
|
||||||
