HDFC hits the street with ₹14,000 crore equity fundraise
1 min read . Updated: 05 Aug 2020, 11:24 PM ISTThe board has also approved raising up to ₹9,000 cr through an issue of non-convertible debentures
Private sector mortgage financier Housing Development Finance Corp Ltd (HDFC) on Wednesday said that its board had approved the launch of its so-called qualified institutional placement (QIP) offering to raise up to Rs14,000 crore by selling equity shares and warrants, the lender said in an exchange filing.
QIP is a capital-raising tool through which listed companies can sell shares, fully and partly convertible debentures, or any securities, other than warrants that are convertible into equity shares, to qualified institutional buyers.
HDFC, in a stock exchange filing, said that its board had approved the launch of the share sale and had fixed a floor price of Rs1,838.94 per share for the QIP offering, as per the formula prescribed by Securities and Exchange Board of India (Sebi).
On Tuesday, HDFC shares closed trading at Rs1,776.9 per share, down 0.13%, on the BSE.
The QIP will comprise of equity share sale of Rs10,000 crore and sale of warrants worth Rs4,000 crore.
The lender added that it's board has also approved raising up to Rs9,000 crore through issuance of non convertible debentures.
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