For domestic investors, the shares were priced at the upper band of Rs 1,067 a share. The bank raised Rs 2,000 crore through a qualified institutional placement (QIP) and Rs 7,840 crore ($1.27 billion) from US-based investors. The ADRs were priced at $56.76 each.

Bankers said the share sale received an overwhelming response from domestic investors, with demand at four times the issue size. This was despite the fact that the shares were offered at nominal discount of up to one per cent. Through the QIP, the bank will issue 18.7 million shares and dilute its equity 0.77 per cent. The bank plans to use the funds to boost its capital adequacy ratio and for lending.

HDFC Bank’s ADR issue was the biggest launched in the US by an Indian entity since 2009.

On Thursday, the HDFC Bank stock closed at Rs 1,077 on the BSE, up 0.94 per cent.

Analysts say investors are betting big on the combined impact of falling inflation, a stable government, robust consumer confidence and expectations of further interest rate cuts, which will aid consumption and retail loan growth for Indian banks.

“There is lot of capital available for investing in growth companies. HDFC Bank is the leader in the banking space and a great growth story. There is huge appetite for good quality companies. Domestic mutual funds are flushed with money. The global liquidity situation, too, continues to remain good, considering the stimulus in Europe,” said V Jayasankar, senior executive director and head of equity capital markets, Kotak Investment Banking. HDFC Bank’s domestic shares were being traded at a 12 per cent discount to its ADRs. Perhaps that was why the bank opted to carry out the majority of its fund-raising in the US, Jayasankar said.

The successful launch of HDFC Bank’s fund-raising comes within a week of Coal India’s share sale, which raised Rs 22,600 crore. While Tata Motors is planning a Rs 7,500-crore rights issue, State Bank of India has announced a Rs 15,000-crore rights issue. Many other companies are planning QIPs and initial public offerings of shares. “This is the start of a bull run in India. The next big event will be the Budget. With a pro-business government at the Centre, things will only be positive for investors,” said an analyst.

HDFC Bank’s QIP and ADR issue were managed by JM Financial, BoFA-Merrill Lynch, Credit Suisse, JP Morgan and Morgan Stanley, Barclays, Goldman Sachs, Nomura and UBS. “This (the good response) shows quality and growth stocks have huge demand from investors,” said Motilal Oswal, chairman of Motilal Oswal Financial Services.