Discussion Community

HDFC to raise Rs 4k cr from institutions

Mumbai: Home loan major Housing Development Finance Corporation (HDFC) is planning to raise up to Rs 4,000 crore from qualified institutional investors by issuing a combination of debt and equity instruments. On Tuesday, the HDFC board proposed to issue non-convertible debentures (NCDs), along with warrants that could be converted into shares at a future date, through a QIP offering to be completed later in the year.

    Even at a conservative growth rate of 10%, HDFC's fund requirement to meet this financial year's projected disbursements will be around Rs 45,000 crore. So, the proposed Rs 4,000 crore will meet about 9% of the firm's disbursement needs.

Apart from the regular fund requirement, HDFC will also — later this year — require about Rs 3,600 crore to convert HDFC Bank's 2.62 crore warrants — which were vested with HDFC during the bank's acquisition of Centurion Bank of Punjab — into equity shares. HDFC has to pay this money before the end of the year. TNN