Mortgage lender Housing Development Finance Corporation (HDFC), on Saturday, said the board had given approval for raising the FII (foreign institutional investors) shareholding limit to 100 per cent.
The move is precursor to upcoming conversion of the company's warrants into equity by foreign investors that would increase the overall FII holding in HDFC beyond the current limit of 74 per cent. The warrants are up for conversion on or before August 24.
The board of directors of the corporation has passed an enabling resolution, approving the increase in the limit on shareholding by FIIs under the portfolio investment scheme, from 74 per cent up to 100 per cent of the paid-up equity share capital, HDFC said in filing to the BSE.
At present, FII holding in HDFC stands at 66.7 per cent while the promoter holding in the company is nil.
It informed “the warrants issued by HDFC in August, 2009, re due for exchange into equity shares on or before August 24.”