HDFC to raise upto Rs 4000 crore

Housing Development Finance Corporation Ltd (HDFC) has announced that a Committee of Directors of the Corporation at its meeting held on June 09, 2009 has approved a proposal for a combined offering of Secured Redeemable Non-Convertible Debentures (NCDs) of up to Rs 4,000 crores (Rupees Four Thousand Crores only) along with Warrants in accordance with Chapter XIII-A of the SEBI (Disclosure and Investor Protection) Guidelines, 2000 (SEBI DIP Guidelines).

The Warrant-Holder will upon exchange of the Warrants, be entitled to purchase equity shares of the Corporation, at a future date. The quantum of premium to be paid at the time of purchasing the equity shares will be determined at the time of issue of the Warrants. Both the NCDs and Warrants will be listed separately on the recognized Stock Exchanges.

The maximum dilution that could take place in future, if all the Warrants are exchanged into equity shares of the Corporation, would not exceed 3.5% of the expanded Equity Share Capital of the Corporation.

The NCDs together with the Warrants will be issued to Qualified Institutional Buyers on a Qualified Institutional Placement basis pursuant to and in accordance with the provisions of SEBI DIP Guidelines.

The aforesaid issue of NCDs with Warrants is subject to the approval of the Shareholders at the ensuing Annual General Meeting to be held on July 22, 2009.

The stock closed the day at Rs.2355.40, up by Rs.27.85 or 1.20%. The stock hit an intraday high of Rs.2385 and low of Rs.2302.20.

The total traded quantity was 118990 compared to 2 week average of 124904.

Source : Equity Bulls

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