HDFC, Axis achieve fund-raising goals
The country’s largest pure play mortgage lender HDFC on Tuesday said it has raised close to Rs 14,000 crore by issuing shares to qualified institutional investors and through non-convertible debentures.
The Government of Singapore received 13.37 per cent of the shares allotted (75.9 lakh shares), while Invesco Oppenheimer Developing Markets Fund received 5.54 per cent (3.2 lakh shares).
In a separate announcement, Axis Bank said it has raised Rs 10,000 crore through a QIP (qualified institutional placement) issue. HDFC disclosed that it has raised Rs 10,000 crore, allotting 5.7 crore equity shares at an issue price of Rs 1,760 per share.
The price represents a discount of 1 per cent to the closing price of its equity shares on the stock exchanges prior to the launch of the issue. The HDFC stock on Tuesday ended with gains of 1.48 per cent at Rs 1,825.35.
HDFC said it has received Rs 307.03 crore upfront through the issue and the allotment of 1.7 crore warrants at an issue price of Rs 180 per warrant.
The warrants entitle the holder to exchange each warrant for one equity share of HDFC at any time over the next three years until August 10, 2023 at a pre-agreed price of Rs 2,165.
The warrant issue price together with the warrant exercise price represents a premium of 32 per cent to the closing price of its shares prior to the launch of the issue.
In addition, HDFC raised Rs 3,693 crore through the issue of redeemable non-convertible debentures for a tenor of three years, carrying an annualised coupon rate of 5.40 per cent per annum. It added that the issue has been over-subscribed overall.
“Assuming all the warrants are exercised by investors within the next three years, the corporation would receive an additional Rs 3,386 crore by way of securities premium. Accordingly, the maximum equity dilution possible under the issue would be up to 4.26 per cent of the enhanced equity share capital of the corporation,” HDFC said.
Axis Bank too saw good response to its QIP offering from the global and domestic investor community, including several large FPIs, domestic mutual funds and insurance companies. The deal was over-subscribed with the aggregate size being Rs 10,000 crore.
The issue was done at a price of Rs 420.10 per share ,a discount of five per cent to the floor price of Rs 442.19 per share.
“We believe that the Bank is well placed to leverage all the possible growth opportunities that will come in as the economy opens up and is in a strong position to combat the challenges that emanate from the Covid-19 pandemic crisis. We believe in the strong fundamentals of the Indian economy and based on our vision for growth, profitability and sustainability, will keep delivering the best value to our customers, shareholders and investors’’, Amitabh Chaudhry, MD & CEO, Axis Bank said.