The Cabinet Committee on Economic Affairs (CCEA), on Wednesday, cleared the proposal of HDFC Bank to raise Rs.10,000 crore from foreign investors.
The meeting, chaired by the Prime Minister, approved the HDFC Bank proposal that will raise its foreign holding to 74 per cent, enabling inflow of around Rs.10,000 crore from overseas investors, an official statement said.
Total foreign investment in HDFC Bank was 73.39 per cent at the end of June, 2014. .
The funds would be raised by issuing shares to non-resident Indians or FIIs or foreign portfolio investors subjected to aggregate foreign shareholding not exceeding 74 per cent of the post-issue paid-up capital, said the statement.
The government also allowed drug maker Lupin to raise the cap of foreign institutional investor holding to 49 per cent, a move that would facilitate an inflow of Rs.6,099 crore.
