HDFC Bank says to issue shares to founders

Written by Reuters | Mumbai, February 29: | Updated: Feb 29 2008, 15:41pm hrs
HDFC Bank Ltd said on Friday it would issue 26.2 million shares and/or warrants to its founders, mainly top mortgage firm Housing Development Finance Corp, for 40 billion rupees.

The preferential allotment will be at a price of 1,530.13 rupees a share, 4 percent above the 1,471.05 rupees close on Thursday.

HDFC Bank, India's third-biggest bank by market value, said on Saturday it would take over smaller rival Centurion Bank of Punjab CENB> in an all-share deal that would be India's biggest financial sector buyout.

It offered one share for every 29 held in Centurion Bank of Punjab, and had said it would make a preferential allotment to HDFC Bank's founders to enable them to retain their level of shareholding.