BackHDFC gains 4.73% after raising over Rs10,000 crore via warrants
In intra-day trading, the stock touched a high of Rs1,260.20a level last seen on 20 August
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Mumbai: Shares of Housing Development Finance Corp. Ltd (HDFC) on Monday rose over 5% intra-day after the mortgage lender successfully raised over ₹ 10,000 crore by selling warrants and non-convertible debentures.
In intra-day trading, the stock touched a high of ₹ 1,260.20—a level last seen on 20 August. Year-to-date, the stock has gained 10.4%.
The company’s board on 5 October approved the sale of 36.5 million warrants at an exercise price of ₹ 1,475 apiece to eligible qualified institutional buyers. The warrant holder will get a right to exchange each warrant for one share of the company at any time before the expiry of a period of 36 months from the date of allotment, HDFC said in a release to BSE.
The warrant issue price of ₹ 14 will not be adjusted against the warrant exercise price nor will it be refundable by the corporation, the BSE release added. With the issuance of the warrants, HDFC has raised ₹ 5,384 crore.
“The maximum dilution that could take place in future, if all the warrants are exchanged for equity shares, would be up to 2.2% of the expanded equity share capital of the corporation, after taking into consideration the un-exercised stock options and assuming full exercise of such options as on July 28", HDFC said.
Besides, it has raised ₹ 5,000 crore through the sale of 5,000 non-convertible debentures of face value of ₹ 1 crore each due in March 2017 which will carry a coupon rate of 1.43% annually.
The company is scheduled to report its second-quarter earnings on 26 October.
Shares of HDFC closed 4.73% higher at ₹ 1,256 apiece on BSE on Monday, while the benchmark Sensex surged 2.15%, or 564.60 points, to 26,785.55.
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