HDFC Bank completes rare secondary offering

HDFC brings first follow-on ADR offering from the domestic banking sector.

HDFC Bank raised $260 million after new York's close on Thursday January 20, becoming only the second Indian company after Infosys to complete a follow-on ADR offering. Under the lead management of Merrill Lynch and Morgan Stanley, the bank priced the deal at $39.26 - parity to the ADR close and at a 12.5% premium to the Indian spot close of Rs510.

If the greenshoe is exercised, the deal size will be bumped up to $300 million. One ADR equals three shares.

In the two days running up to pricing, the ADR premium contracted 6%, making pricing more palatable to institutional investors that had been baulking...

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