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India's HDFC Bank says to issue shares to founders

Thu Feb 28, 2008 11:09pm EST

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MUMBAI, Feb 29 (Reuters) - India's HDFC Bank Ltd (HDBK.BO) said on Friday it would issue 26.2 million shares and/or warrants to its founders, mainly top mortgage firm Housing Development Finance Corp (HDFC.BO), for 40 billion rupees ($1 billion).

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.BO 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. ($1 = 39.9 rupees) (Reporting by Hiral Vora; Editing by Ranjit Gangadharan)



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