HDFC garners `10K cr via QIP

Mortgage lender Housing Development Finance Corporation Ltd (HDFC) on Tuesday said that it has raised Rs 14,000 crore through qualified institutional placement of equity shares and secured redeemable non-convertible debentures simultaneously with warrants.

The proceeds of the issue, it said, will be used towards general corporate purposes and financing organic and inorganic business opportunities that may arise.

The Corporation has raised Rs 10,000 crore by issuing 5.68 crore equity shares at an issue price of Rs 1,760 per share to qualified investors, including Government of Singapore and Invesco Oppenheimer Developing Markets Fund.

Besides, it raised Rs 3,693 crore through an issue of non-convertible debentures at par for a tenor of three years carrying an annualised coupon rate of 5.40 per cent per annum.

The lender also allotted 1.7 crore warrants at an issue price of Rs 180 per warrant, aggregating to around Rs 307 crore under the QIP issue, according to a regulatory filing. The warrants entitle the warrant holder to exchange each warrant for one equity share of the corporation at any time over the next three years i.e. until August 10, 2023, at a preagreed price of Rs 2,165 (warrant exercise price). The warrant issue price together with the warrant exercise price represents a premium of 32 per cent to the closing price of the corporation’s equity shares on the BSE/NSE prior to the launch of the Issue.

“The equity shares and warrants offered in the QIP have been subscribed to by 326 diverse marquee institutional funds,” said HDFC Ltd.