HDFC to raise Rs 13,000 crore to participate in HDFC Bank's preferential issue of shares

Mumbai: Mortgage lender HDFC has received a board approval to raise up to Rs 13,000 crore through preferential issue of shares. “The issue will be through a preferential issue or qualified institutions placement basis or through any other permissible mode or combination,” HDFC vice chairman and CEO, Keki Mistry, told reporters on Tuesday. [caption id=“attachment_4016497” align=“alignleft” width=“380”]  HDFC Bank. Reuters[/caption] The capital raised will be used to participate in the preferential issue of HDFC Bank. The bank has proposed to raise capital to fund its growth. HDFC, along with its wholly-owned subsidiaries, currently holds 21.01 percent in HDFC Bank. “In order for the Corporation to more or less maintain its current shareholding in HDFC Bank (post dilution), it will need to participate in the banks preferential offer up to Rs 8,500 crore,” Mistry said. HDFC did not participate in the last equity issue of HDFC Bank in February 2015.