After the issue, HDFCs total foreign holding will be 80.4%, up from the existing 78.9%. The board of directors of the corporation on Friday recommended that 1.8 crore equity shares of Rs. 10 each on a preferential basis be issued to these two investors.
The shares would be priced at Rs. 1,730 per equity share of Rs 10 each. This price represents a 6.9% premium over the average weekly closingboth high and lowof HDFC share prices during the past six months period.
After over 12 years, we have raised funds through selling equities (except an FCCB isue), which will give us the leverage to raise debt, said Keki Mistry, managing diector, HDFC. According to him, the corporation will not go in for another equity issue in the near future.
The price represents a 6.9% premium
Carlyle Group, through CMP Asia Ltd, will subscribe to 1.525 crore shares and Citigroup Strategic Holdings Mauritius Ltd will buy the balance. After the issue Carlyle Group will hold 5.6% of equity in HDFC.