HDFC to raise Rs 4,301 crore via NCDs
Housing Development Finance Corporation (HDFC), India's leading home loan provider, on Thursday announced that it would raise Rs 4,301 crore by issuing non-convertible debentures to Qualified Institutional Buyers (QIB).
Mr. Keki Mistry, HDFC's Vice-Chairman and MD, stated that this is first-of-its-kind Qualified Institutional Placement (QIP) issue, as they are providing a combination of debt and warrants.
He also added that the issue has a size of Rs 4,301 crore and is directed mainly at domestic investors including banks, insurance and mutual funds, as they still do not have approval of Foreign Investment Promotion Board (FIPB).
Out of the Rs 4,301 crore, Rs 2,000 crore was raised through zero coupon Non-convertible Debentures (NCDs) with a maturity period of 2 years and an annualized rate of 7.15%. Remaining Rs 2,000 crore is also a zero coupon NCD with a maturity period of 3 years and an annualized rate of 7.85%.
Besides this, HDFC had also issued about 1.09 crore warrants at a cost of Rs 275 each warrant.
Shares of HDFC, on Monday, closed at Rs 2,516, on BSE. The total quantity of shares traded was 86,184 on the BSE.
