HDFC Bank declines after QIP issue price set at a discount

HDFC Bank declined 0.71% to Rs 1,069.60 at 10:00 IST on BSE after the committee approved the issue price of Rs 1,067 per share to qualified institutional buyers at a discount to yesterday's closing price.

The bank made the announcement after market hours yesterday, 5 February 2015.

Meanwhile, the BSE Sensex was up 25.28 points, or 0.09%, to 28,876.25.

On BSE, so far 27,645 shares were traded in the counter, compared with an average volume of 1.96 lakh shares in the past one quarter.

The stock hit a high of Rs 1,080 and a low of Rs 1,057.20 so far during the day. The stock hit a record high of Rs 1,099.70 on 29 January 2015. The stock hit a 52-week low of Rs 618 on 4 February 2014.

The stock had outperformed the market over the past one month till 4 February 2015, rising 10.6% compared with 3.57% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 17.22% as against Sensex's 3.67% rise.

The large-cap private bank has equity capital of Rs 483.76 crore. Face value per share is Rs 2.

HDFC Bank said that the special committee of the bank, at its meeting held on 5 February 2015, inter alia, declared the closure of the issue period for the qualified institutional placement (QIP) on 5 February 2015. The committee approved the issue price of Rs 1,067 per share for the shares to be allotted to determined and approved eligible qualified institutional buyers (QIBs) in the QIP.

The issue price of Rs 1,067 per share to be alloted to the QIBs was set at a discount of 0.95% to the yesterday's closing price of Rs 1,077.25.

Separately, HDFC Bank after market hours yesterday, 5 February 2015 said that the special committee of the bank, at its meeting held on 5 February 2015, inter alia, declared the closure of the issue period for the American depository receipts (ADR) offering on 5 February 2015. The committee approved the issue price of $57.76 per ADR to be issued to eligible investors in the ADR offering.

HDFC Bank on 5 February 2015 said that the bank will raise funds through a combination of share sales to qualified institutional investors and the issue of ADRs. A special committee for the bank had approved raising upto Rs 2000 crore through issue of equity shares to qualified institutional investors. The bank will raise upto Rs 8500 crore through issue of American Depository Receipts (ADRs). The floor price for QIP issue and the ADR issue was fixed at Rs 1,061.84 per equity share.

HDFC Bank's net profit rose 20.1% to Rs 2381.46 crore on 16.4% rise in total income to Rs 13894.73 crore in Q2 Septeber 2014 over Q2 September 2013.

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