HDFC's bid to raise upto Rs 5,000cr via securities opens

Country's largest mortgage lender HDFC Ltd said the bid to raise up to Rs 5,000 crore via NCDs and warrants opens today. "Committee (of Directors) be and is hereby accorded to open the issue in accordance with Sebi regulations. "In respect of the issue, the bid opening date for the issue shall be September 30, 2015," it said in a filing on the BSE.

HDFC Ltd in its annual general meeting held in end of July had said that it will issue non-convertible debentures (NCDs) and warrants to QIBs up to Rs 5,000 crore. "[The company] will issue, offer and allot warrants exchangeable for equity shares simultaneously with secured redeemable non-convertible debentures of face value of Rs 1 crore each to eligible qualified institutional buyers (QIBs) by way of qualified institutional placement (QIP)," it said in the filing. In case warrants are exchanged with equity shares of the company, it would result in a maximum issue of 3.65 crore equity shares of face value of Rs 2 each of the Corporation.

The floor price of the warrants shall be Rs 1,189.66 per warrant, it added. The company said the NCDs will mature in March 2017, while the exercise period of the warrants will be 36 months from the date of allotment of warrants. Also, it said the bidder will be entitled and eligible to apply for at least 7,300 warrants for each NCD applied for in the issue.

The Housing Development Finance Corporation (HDFC) Ltd will use the proceeds from the issue to boost lending operations and meet its future capital needs.