Private sector lender HDFC Bank has joined the $100-billion market capitalisation (M-cap) club. Including the value of its American depository receipts (ADRs), the Mumbai-based lender’s market value currently is $101.6 billion.
Only Reliance Industries (M-cap $123 billion) and Tata Consultancy Services ($108 billion) have higher market value. At fourth and fifth place are consumer goods companies Hindustan Unilever and ITC, with market cap of $55 billion and $53 billion, respectively.
Both RIL and TCS first crossed $100 billion in market cap last year, but a correction in the markets and a fall in the rupee saw both slipping below the $100-billion mark in October. However, a sharp rebound in the markets and the rupee helped reclaim the mark.
The market cap of HDFC Bank’s local shares is $87 billion. But, the bank has an active ADR programme, where its shares trade at a 15 per cent premium to the value of its local shares. The bank had last year raised Rs 15,000 crore in equity, a large part of which came through the ADR issuance.