HDFC Ltd announced that its board has approved raising up to INR 13,000 crore through a combination of a Preferential Allotment and Qualified Institutions Placement, subject to shareholders’ approval through postal ballot.
The company has bagged a INR 11,104 crore investment from marquee investors – like private equity giant GIC Singapore, KKR, Canadian pension plan Ontario Municipal Employees Retirement System, Carmignac Group and Premji Invest. This would lead to a stake dilution of 3.87%.
The preferential allotment will be made at a share price of Rs 1,726.05 per share to 10 investors.
“The Committee of Directors of the Corporation at its meeting held approved the issue of equity shares up to an aggregate amount not exceeding Rs 13,000 crore through a combination of a Preferential Allotment and Qualified Institutions Placement,subject to shareholders’ approval through postal ballot,” HDFC said.
The company is also exploring inorganic opportunities in the health insurance sector in conjunction with its subsidiary HDFC ERGO General Insurance Company.
The Corporation is evaluating opportunities in the acquisition and resolution of stressed assets in the real estate sector.
The Corporation has set up funds for investing in the equity and mezzanine debt of affordable housing projects. The Corporation has committed sponsor support to these funds.
HDFC will also sell shares to institutional investors through Qualified Institutions Placement to raise up to INR 1,896 crore.
The key objective of raising capital is to participate in the preferential issue of HDFC Bank Ltd up to an amount not exceeding INR 8,500 crore.