HDFC Bank has appointed four lead managers for its American depositary shares aggregating $300 million. The overseas issue is likely to hit the market in the last quarter of the current financial year 2004-05.

The private sector bank will file its prospectus with the US Securities and Exchange Commission by December 15 and the road shows will kick off by January 16, said banking sources.

Of the four lead managers, banking sources said DSP Merrill Lynch and JM Morgan Stanley.

When asked HDFC Bank officials refused to comment on the names of the lead managers or the timing of the road shows.

The bank's board met shareholders on Tuesday at an extraordinary general meeting seeking their approval to the issuance of shares in the form of ADS worth $300 million, including a greenshoe option up to 15 per cent of the amount of the offer.

Jagdish Capoor, chairman, HDFC Bank, told shareholders that the capital raised will be used to support future growth and fund infrastructure as the banks plans expansion of branches and distribution channels.

Post ADR, the capital adequacy ratio will rise to about 12.5 per cent. The bank's capital adequacy ratio as on September 30 stood at 10.9 per cent.

Following the ADR, promoter holding of Housing Development Finance Corporations will fall to 20.08 per cent from 24.08 per cent. Foreign share holding will increase to 51 per cent from the current 47 per cent, said Capoor.

HDFC Bank board preferred an ADS issuance since it enables the bank to raise capital from a wider base and get access to a better price per share, as opposed to tapping the domestic market, said Capoor.