Advertisement

Home / Business / HDFC board meet on fund raising

HDFC board meet on fund raising

It will seek shareholders’ approval for issuance of equity shares and/or other securities through any permissible mode
The HDFC scrip on Wednesday ended at Rs 1794.05, a drop of 1.58 per cent, or Rs 28.75 over its last close.
The HDFC scrip on Wednesday ended at Rs 1794.05, a drop of 1.58 per cent, or Rs 28.75 over its last close.
(Shutterstock)

Our Special Correspondent   |   Mumbai   |   Published 18.06.20, 12:47 AM

HDFC has become the latest entity to join the fund raising bandwagon. The board of the country’s largest housing finance company is set to meet on Friday to discuss the plans.

“A meeting of the committee of directors of the corporation, duly constituted by the board of directors, will be held on Friday, June 19, to consider seeking shareholders’ approval for raising of funds by issue of equity shares and/or other securities through any permissible mode, subject to such approvals as may be required,” HDFC said in a regulatory filing to the stock exchanges on Tuesday.

Advertisement

The HDFC scrip on Wednesday ended at Rs 1794.05, a drop of 1.58 per cent or Rs 28.75 over its last close. While the corporation will disclose the details of the proposed fund raising plan on Friday, Moneycontrol on Wednesday reported that it will raise Rs 12,000 crore through qualified institutional placement (QIP) and non-convertible debenture or foreign currency convertible bond.

In recent times, various entities have raised funds via QIPs. Last week, investment banker JM Financial announced that it raised Rs 770 crore by issuing shares to a set of investors.

Earlier, Kotak Mahindra Bank mobilised Rs 7,442.5 crore through a QIP. The private sector lender issued 6.5 crore shares at a price of Rs 1,145 apiece to the buyers

Yes Bank is also reportedly considering raising around Rs 8000 crore through a rights issue.

Sebi has also relaxed rules with regard to the time-gap between two successive QIPs. Currently this stands at six months. This has been reduced to two weeks. Sebi had earlier said that the companies have been seeking exemptions or waiving off for the requirement of six-month cooling off period between two successive QIP issues. The reasons cited for such an exemption include an urgent need of funds and the fact that other fund raising mechanisms such as public issue or rights issue are time taking in comparison to a QIP issue.



Advertisement
Advertisement
Advertisement
 
 
 
Copyright © 2020 The Telegraph. All rights reserved.