Jan 15, 2018 09:12 AM IST | Source:

HDFC finalises plan to raise Rs 13,200 crore via QIP and preferential issue

HDFC board has approved to raise Rs 11,301 crore by issuing issuing 6.43 crore shares at Rs 1,726.05 per share to investors.

Beena Parmar @BeenaParmar
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HDFC board has approved fund raising worth Rs 11,301 crore by issuing 6.43 crore shares at Rs 1,726.05 per share to investors, including global private equity biggie GIC Singapore, KKR and Premji Invest.

Housing Development Finance Corporation or HDFC's committee of directors in a meeting held on Saturday approved to the "issuance of 6,43,29,882 equity shares if Rs 2 each of the Corporation on a preferential basis", HDFC said in a release to the stock exchanges on Saturday.

It will further issue such number of equity shares through Qualified Institutional Payment (QIP) to raise up to Rs 1,896 crore

The fund raising would be subject to approval of the members of the Corporation, it added.

The investors to whom the shares are proposed to be issued through preferential allotment  include Waverly Pte. Ltd (an affiliate of GIC) - 3.01 crore shares; OMERS Administration Corporation - 1 crore shares; Silverview Investments (a KKR affiliate) - 92.69 lakh shares, and Carmignac group  companies - 91.40 lakh shares, Azim Premji Trust and PI Opportunities Fund - I - 28.96 lakh shares each.

The meeting commenced at 8.45 am and concluded at 9.55 am.

In December, the largest private housing finance player had said it planned to raise capital of up to Rs 13,000 crore through private placement, QIP or on a preferential basis in the next one year.

HDFC will also infuse up to Rs 8,500 crore in its subsidiary HDFC Bank — in which it holds 21.01 percent stake at present.

Keki Mistry, Vice-chairman and CEO of HDFC had said apart from infusion in the bank, the capital raised would be used to buy more portfolios into the health insurance segment, investments in distressed real estate assets and other inorganic growth opportunities including buying other housing finance companies.
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