Country's largest mortgage lender HDFC Ltd today said it plans to raise a total of Rs 90,000 crore from various instruments including non-convertible ...
Country’s largest mortgage lender HDFC Ltd today said it plans to raise a total of Rs 90,000 crore from various instruments including non-convertible debentures and warrants to fund business expansion.
The board in exercise of its power has proposed issuance of “redeemable Non-Convertible Debentures (NCDs) and or any other hybrid instruments, which can be classified as being tier II capital, for cash up to an aggregate amount not exceeding Rs 85,000 crore on a private placement basis,” HDFC said in a filing on the BSE.
Further, it would raise Rs 5,000 crore through issue of redeemable NCDs simultaneously with warrants to qualified institutional buyers in one or more tranches.
The warrants, upon conversion to equity shares, would result in issuance of a maximum of 3.65 crore shares. It “would result in a maximum dilution of up to 2.2 per cent of the expanded share capital of the Corporation”.
The allotment of the warrants would be completed within 12 months from the date of passing the resolution by the AGM.
The fund to the tune of Rs 85,000 crore would be raised through issuance of redeemable non-convertible debentures or other hybrid instruments on a private placement basis. This would form part of its tier II capital.
The NCD issuance would be issued in tranches and fund raising would be carried out over a period of one year after the approval.
The company would seek shareholders approval at its annual general meeting to be held on July 28 on its fund raising plans.
The AGM would also consider re-appointment of HDFC chairman Deepak Parekh as director of the company.
For the entire fiscal ended March 31, 2015, the company’s consolidated net profit increased 10.2 per cent to Rs 8,762.62 crore as against Rs 7,947.82 crore in the previous fiscal.
The total income on consolidated basis during the 2014-15 fiscal increased to Rs 48,315.69 crore from Rs 40,753.17 crore in the previous year.
On standalone basis, the net profit for the entire fiscal rose by 10.1 per cent to Rs 5,990.14 crore as compared to Rs 5,440.24 crore in 2013-14.
During the year, total income improved to Rs 27,470.86 crore from Rs 24,143.01 crore in 2013-14.