The country’s largest mortgage lender HDFC Ltd. raised more than ₹14,000 crore on Tuesday through a qualified institutional placement (QIP) issue of equity shares, warrants and bonds.
HDFC raised the amount through the issue and allotment of 5,68,18,181 equity shares of face value of ₹2 each at a price of ₹1,760 per equity share to qualified investors. The issue has been oversubscribed overall and the shares and warrants offered were subscribed by 326 diverse institutional funds, the company said in a statement.
The issue price is at a discount of 1% to the closing price of its equity shares on the BSE/NSE prior to the launch of the issue, it said. The company’s shares ended 1.48% up at ₹1,825.35 per piece on BSE on Tuesday.
Government of Singapore and Invesco Oppenheimer Developing Markets Fund were allotted 13.37% and 5.54% of the shares respectively along with Axis Bank, Kotak Mahindra Bank, Morgan Stanley Asia (Singapore) PTE and JM Financial Products Ltd. that cornered more than 5% of the equity shares each offered in the QIP.
HDFC raised ₹3,693 crore by issuing redeemable non-convertible debentures (NCDs) at par, for a tenor of three years, carrying an annualised coupon rate of 5.40% per annum, the company said. It issued 36,930 secured redeemable NCDs of face value of ₹10 lakh each due on August 11, 2023, with a coupon rate of 5.40% payable annually.
The company also received ₹307.03 crore through the issue and allotment of 1,70,57,400 warrants at an issue price of ₹180 per warrant. The warrant holders can exercise the right to convert these into shares at the warrant exercise price of ₹2,165 until August 10, 2023. Warrant holders include SBI Blue Chip Fund, ICICI Prudential Banking and Financial Services, Reliance Ventures Ltd, and Kotak Balanced Advantage Fund.
Of the total equity shares and warrants allotted, 89% were towards long-only funds. About 30% of the issue was given to domestic institutional investors.
The proceeds of the issue will be used towards general corporate purposes and financing organic and inorganic business opportunities. It includes funding expansion plans of subsidiary and associate companies of HDFC.