HDFC Bank gains after Cabinet allows hike in foreign stake

HDFC Bank rose 1.64% to Rs 1,075.50 at 10:00 IST on BSE after the Cabinet approved share issue aggregating to an amount of Rs 10000 crore to foreign investors subject to aggregate foreign shareholding not exceeding 74%.

The Cabinet Committee on Economic Affairs made announcement after market hours yesterday, 28 January 2015.

Meanwhile, the S&P BSE Sensex was down 115.08 points or 0.39% at 29,444.10.

On BSE, so far 32,979 shares were traded in the counter as against average daily volume of 1.97 lakh shares in the past one quarter.

The stock hit a high of Rs 1,077.10 and a low of Rs 1,061.50 so far during the day. The stock had hit a record high of Rs 1,093 on 28 January 2015. The stock had hit a 52-week low of Rs 618 on 4 February 2014.

The stock had outperformed the market over the past one month till 28 January 2015, gaining 11.63% compared with Sensex's 8.51% rise. The scrip had also outperformed the market in past one quarter, gaining 18.2% as against Sensex's 9.96% rise.

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

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, gave its approval to the proposal of HDFC Bank for maintaining the permissible foreign holding in the bank up to 74% of the total paid up capital and issuance of equity shares aggregating to an amount of Rs 10000 crore to NRIs/FIIs/FPIs subject to aggregate foreign shareholding not exceeding 74% of the post issue paid up capital. The approval would result in foreign investment of Rs 10000 crore (approximately) in the country.

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 September 2014 over Q2 September 2013.

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