Mortgage lender Housing Development Finance Corporation (HDFC) on Friday sought shareholders’ nod to raise up to Rs 85,000 crore through private placements within a year of its annual general meeting on July 28.
In a regulatory filing, the lender said funds would be raised through redeemable non-convertible debentures (NCDs) secured or unsecured or other hybrid instruments which can be classified as tier II capital.
HDFC has increased its borrowing limit in FY16 from Rs 75,000 crore in the previous fiscal; the lender said it had raised Rs 26,170 crore via secured NCDs and Rs 3,000 crore via unsecured NCDs in FY15. “As on March 31, 2015, the outstanding secured NCDs issued by the corporation was Rs 84,130 crore and unsecured NCDs was Rs 6,475 crore,” HDFC said in the filing.
In a separate resolution, the home loan player sought shareholders’ nod to raise up to Rs 5,000 crore through warrants to qualified institutional buyers. “The warrants, upon exercise would result in an issuance of a maximum of of 3.65 crore equity shares of Rs 2 each of the corporation and would result in a maximum dilution of up to 2.2% of the post issue paid-up equity capital,” it said.
Meanwhile, other lenders like State Bank of India (SBI), ICICI Bank and Yes Bank are also looking to raise capital in FY16. While SBI plans to raise Rs 15,000 crore through an equity offering, Yes Bank is looking to raise Rs 16,000 crore through equity and bonds.
Last month, India’s largest private sector lender ICICI Bank said it has got board approval to raise up to Rs 50,000 crore through private placement of bonds, NCDs and other securities. In a regulatory filing to the NSE, the bank said that the securities will be priced at up to 300 basis points above the prevailing rupee sovereign bond rate.
In July 2014, Andhra Bank’s Rs 1,000-crore issue was rated AA+ by ratings agency Crisil, making it the first long-term infrastructure bond to thus rated. Kotak Mahindra Bank’s Rs 300-crore issue was rated AAA by Crisil earlier in August.
In February this year, HDFC Bank successfully concluded a Rs 10,000-crore private placement to institutional investors in the US and India. The Aditya Puri-led bank raised close to $1.3 billion (Rs 8,000 crore) by way of American depositary receipts on the current exchange rate. Additionally, the bank has raised close to Rs 2,000 crore by way of qualified institutional placement from domestic institutions.
HDFC had reported a 8% year-on-year rise in Q4 net profit to Rs 1,862.4 crore after making a special reserve for deferred tax liability of Rs 119.7 crore. The rise in net profit was aided by the higher loan growth.