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Housing finance major HDFC to raise upto $780M via debt-equity combo

Housing Development Finance Corp Ltd (HDFC), the country's largest mortgage lender, is planning to raise upto Rs 5,000 crore (about $780 million) through an issue of secured redeemable non-convertible debentures, along with equity convertible warrants, according to a stock market disclosure.

The NCDs, together with the warrants, will be issued to qualified institutional buyers, subject to approval of the shareholders of the company at the annual general meeting scheduled to be held on July 28, 2015.

The warrant holder will be entitled to exchange the warrants with the equity shares of the company in a stipulated period (maximum period being five years currently), it said in the statement.

The maximum dilution that could take place in future, if all the warrants are exchanged into equity shares of the lender, would be 2.2 per cent of the expanded equity share capital, it added.

The aforesaid NCDs and warrants will be listed separately on BSE and NSE.

Last month, the company had raised Rs 150 crore (about $23.4 million) through the issue of 3,000 senior secured redeemable non-convertible bonds of face value of Rs 500,000 per bond on a private placement basis. The proceeds would be used for financing and refinancing the business requirement of the corporation.

HDFC offers a range of financial services which include loans to individuals, loans to corporates, construction finance and lease rental discounting. It also operates in insurance, asset management, education finance, venture funds and banking services segments.

On Monday, shares of the company were trading at Rs 1177.9 each, down 1.93 per cent at 3:40 PM from their previous close on BSE in weak Mumbai market.

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