Cash gush for HDFC
Mumbai: HDFC, the country's largest housing finance company, will be raising over Rs 11,000 crore from marquee investors that include GIC, KKR and Premji Invest. Separately, it will garner Rs 1,896 crore through a qualified institutional placement (QIP).
The total mobilisation of nearly Rs 13,000 crore will be used to maintain its holding in HDFC Bank and enter segments such as stressed assets and health insurance.
This will be the first equity raising by the country's largest pure-play mortgage lender in over a decade. The green signal for the fund raising through a preferential allotment and QIP was given by HDFC's board of directors on Saturday. These issuances are subject to shareholders' approval through postal ballot.
HDFC said in a statement that the board approved the issuance of 6.43 crore shares each on a preferential basis at a price of Rs 1,726.05 apiece, aggregating to Rs 11,103.66 crore to various investors. This is at a slight discount to Friday's closing price of Rs 1761.25.
The housing finance company disclosed that around 3.01 crore shares will be issued to an affiliate of GIC - Waverly Pte. Moreover, one crore shares will be issued to the administrator of the pension plan for Ontario's municipal employees (OMERS) in Canada. Further, about 92 lakh shares will be offered to an affiliate of KKR, Silverview Investment Pte. It will issue 1.40 lakh shares to Carmignac Group, France, which is represented by five entities - Carmignac Investissement, Carmignac Portfolio Investissement, Carmignac Portfolio Investissement Latitude, Carmignac Patrimoine and Carmignac Portfolio Patrimoine. Around 57.93 lakh shares will be offered to Premji Invest, represented by Azim Premji Trust, India, and PI Opportunities Fund I.
"The key objective of raising capital is to participate in the preferential issue of HDFC Bank up to an amount not exceeding Rs 8,500 crore. This will enable the corporation to maintain its current shareholding in HDFC Bank," it said.
HDFC said it was also exploring inorganic opportunities in health insurance with its subsidiary HDFC ERGO General Insurance Company.
It is also looking at the acquisition and resolution of stressed assets in the real estate sector.