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    HDFC launches QIP to raise Rs 14,000 crore

    Synopsis

    The issue would comprise an issue of shares and warrants for up to Rs 14,000 crore, and issue of non-convertible debentures up to Rs 9,000 crore.

    HDFCPTI
    The estimated cutoff yield of the NCDs will be notified as per the circulars issued under electronic bookbuilding mechanism.
    Mumbai: Mortgage lender Housing Development Finance Corp (HDFC) on Wednesday launched its qualified institutional placement (QIP). The floor price was set at Rs 1,838.94 per share.

    The issue would comprise an issue of shares and warrants for up to Rs 14,000 crore, and issue of non-convertible debentures up to Rs 9,000 crore. The estimated cutoff yield of the NCDs will be notified as per the circulars issued under electronic bookbuilding mechanism.

    The lender last month had appointed investment bank Kotak Mahindra Capital Co. as its lead banker. Other investment banks such as Citigroup, Morgan Stanley, Jefferies and Bank of America are also said to be helping HDFC.

    In June, the board of HDFC approved raising capital of Rs 14,000 crore to finance organic and inorganic business opportunities that may arise in financial services including housing finance and in areas where its subsidiaries operate.

    This is the third time in the last 12 years that the lender is raising capital through such a hybrid offering. It had done so once in 2009 and in 2015.

    So far in 2020, about eight companies including Kotak Mahindra Bank, JM Financial, PI Industries Axis, Bank and Info Edge have raised nearly Rs 30,500 crore through QIP.

    Ahead of the announcement, HDFC shares closed 0.13 per cent lower at Rs 1,776.90 on the BSE, while benchmark Sensex shed 0.07 per cent to close at 37,663.33 points.



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    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

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