BUSINESS

HDFC takes QIP route to raise Rs. 14,000 crore

The board of Housing Development Finance Corporation Ltd. (HDFC) has approved and declared open a Qualified Institutional Placement (QIP) issue to raise up to Rs. 14,000 crore via shares and warrants, the mortgage financier said in a filing with the stock exchanges.

The floor price for the issue has been fixed at Rs. 1,838.94 per equity share, as per the formula set down by the Securities and Exchange Board of India (SEBI).

As per the regulations, HDFC may offer a discount of 5% to the floor price, which will be based on its sole discretion, it said.

The Committee of Directors will meet on August 10 to “consider and determine the price to be [determined] by way of the issue to the qualified institutional buyers,” the financier said in the filing.

HDFC added that it would also raise Rs. 9,000 crore through issuance of Secured Redeemable Non-Convertible Debentures.

The shares of the company declined 0.13% to Rs. 1,776.90 on Wednesday on the BSE. As per stock exchange data, the 52-week high was Rs. 2,499.65 a share while the year’s low is Rs. 1,473.10 apiece.

The floor price for the QIP issue has been fixed at Rs. 1,838.94 per equity share

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