Housing Development Finance Corp plans to raise Rs 4,000 crore by selling bonds linked to the company's equity. Its board of directors had on Tuesday approved a combined offering of non-convertible debentures (NCD’s) with warrants, which will give holders a licence to purchase equity shares at a later date.
The quantum of premium to be paid at the time of purchasing the equity shares will be determined at the time of issue of the warrants. Both the NCDs and warrants will be listed separately on the recognised stock exchanges. This is the first time any company is trying to raise money using this newly available route. This has been allowed by Sebi (the stock market regulator) only a couple of months ago.
HDFC is looking for a maximum 3.5% dilution of the company's equity if all the warrants are exchanged into equity shares. Keki Mistry, vice-chairman and managing director at HDFC, said the money will be raised only after taking approval from the shareholders at its annual general meeting on July 22.
HDFC needs the money because of its strong growth in disbursements. Last year it disbursed Rs 30,000 crore of loans, an 18% rise versus the previous year and this year too, the comapny expects disbursements to rise 18-20%.
crackcrack| Company Name | CMP |
|---|---|
| LIC Housing Finance | 581.35 |
| Housing & Urban Dev. | 222.10 |
| Bajaj Housing Financ | 87.01 |
| Piramal Finance | 1936.40 |
| PNB Housing Finance | 1065.60 |
| View more.. | |
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