HDFC proposal approved for additional capital
Foreign shareholding set at 74%
The Cabinet has approved a proposal for HDFC Bank Ltd to raise additional share capital of up to a maximum of Rs.24,000 crore so the composite foreign shareholding in the Bank shall not exceed 74% of the enhanced paid-up equity share capital.
The proposal amount for enlarged capital include premium, over and above the previous approved limit of Rs.10,000 crore.
The decision would ensure that the composite foreign shareholding in the bank inclusive of all types of foreign investments, both direct and indirect, will not exceed 74% of the enhanced paid-up equity share capital of the bank.
It will be subject to Foreign Direct Investment Policy conditionalities and other sectoral regulations and guidelines.
The proposed investment is expected to strengthen the capital adequacy ratio of the bank. fii-news.com