Housing Development Finance Corporation (HDFC) on Monday said it has received board approval to raise up to Rs 5,000 crore through secured redeemable NCDs and by issuing warrants to large investors.
In a regulatory filing, the mortgage lender said the warrant holder will be entitled to exchange the warrants with equity shares of HDFC within a maximum of five years. “The NCDs and warrants will be listed separately on the BSE and the NSE,” it said.
HDFC added that the maximum dilution that could take place in future, if all the warrants are exchanged into shares, would be around 2.2% of its expanded equity share capital. It added that the NCDs, together with the warrants, will be issued to qualified institutional buyers (QIB), subject to shareholders’ approval next month.
In August 2009, HDFC had raised Rs 4,300 crore through a QIP issue of NCD, along with warrants, after Sebi allowed the hybrid instrument. In December 2008, Sebi set norms for a hybrid product for companies to raise low-cost debt.
While the lead managers for the warrants were Citigroup Global Markets, Goldman Sachs, JM Financial, Kotak Mahindra Capital and Nomura, Axis Bank, Citigroup Global Markets, HSBC, JM Financial and Kotak Mahindra Capital were the lead managers for the NCDs.
In Q4FY15, HDFC reported a 8% y-o-y 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.
The HDFC scrip fell 1.8% to close at Rs 1,179.65 on the BSE.