Mortgage Lender Housing Development Finance Corporation (HDFC) on Friday announced that its Board of Directors had approved its plans to raise Rs 14,000 crore via shares, compulsory convertible debentures, non-convertible debentures, warrants and foreign currency convertible bonds. The fund raise comes amid the COVID crisis and has raised a flutter amongst market experts.
HDFC had announced its plan to raise funds on Tuesday but had not disclosed the amount. Today, for the first time, it announced that it had plans to raise Rs 14,000 crore.
HDFC said its board of Directors had approved the plan to raise funds and added that a further approval of the members of HDFC would be taken by postal ballots in due course.
In an exchange filing, HDFC said “the said funds are being raised to augment the long-term resources of the Corporation, to finance organic and/or non-organic opportunities that may arise infinancial services including housing finance and/or in area where its subsidiaries operate, to maintain sufficient liquidity and for generating corporate purposes of the corporation.”
Just before the announcement, HDFC shares closed 0.87 per cent lower at Rs 1839.10 on the BSE while benchmark Sensex rose 1.53 per cent to close at 34,732 on Friday.
HDFC reported a 21.97 per cent year-on-year fall in net profit at Rs 2,233 crore for the quarter ending March 2020. Profit fell as dividend Income received during the quarter was a mere Rs 2crore compared to Rs 537 crore in the same quarter last year.
