HDFC plans to raise up to Rs 13,000 crore via QIP
According to the company, the decision was taken by its board of directors to participate in the preferential issue of HDFC Bank and to explore other growth opportunities.
)
06:12 PM IST
Housing finance major HDFC plans to raise funds up to Rs 13,000 crore ($2 billion) via issue of equity shares or other permissible securities, subject to the regulatory approvals.
"The corporation will consider raising funds by issue of equity shares or compulsorily convertible debentures or warrants or a combination thereof," the company said in a statement.
"The issue will be through a preferential issue or qualified institutions placement basis or through any other permissible mode or combination thereof, subject to necessary shareholder and regulatory approvals."
According to the company, the decision was taken by its board of directors to participate in the preferential issue of HDFC Bank and to explore other growth opportunities.
"The Corporation, together with its wholly owned subsidiaries currently holds 21.01 per cent of the paid-up equity share capital of HDFC Bank. HDFC Bank proposes to raise further capital to fund its growth," the statement said.
"In order for the Corporation to more or less maintain its current shareholding in HDFC Bank (post dilution as a result of outstanding stock options), it will need to participate in HDFC Bank`s preferential offer up to an amount not exceeding Rs 8,500 crore, subject to regulatory approvals and the approval of members of the Corporation."
The Corporation did not participate in the last equity issue of HDFC Bank in February 2015.
HDFC further said that it "is exploring opportunities in the health insurance sector in conjunction with its subsidiary, HDFC ERGO General Insurance Company Limited".
"The Corporation is evaluating opportunities in the acquisition and resolution of stressed assets in the real estate sector. The Corporation has set up funds for investing in the equity and mezzanine debt of affordable housing projects. The Corporation has committed sponsor support to these funds," the statement added.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
)
Rs 10,00,000 FD Deposit For 1-year: Compare interest rates from banks like SBI, BoB, Canara Bank, HDFC Bank, ICICI Bank for general citizens
)
Top 3 Small Cap Mutual Funds with Highest SIP Returns: Rs 13,000 monthly investment in No. 1 fund has grown to Rs 16.96 lakh in just 5 years
)
9 Stocks To Buy For Long Term: Analysts recommend largecap, midcap, smallcap scrips; HUL, TCS on the list
)
Rs 13 Lakh Lumpsum Investment in FD: Compare SBI, HDFC Bank, ICICI Bank, PNB, post office 3-year fixed deposit returns
)
New UPI Rules From August 1: Everyone should know about these 4 UPI changes taking place from next month
06:12 PM IST