New Document top_band
 
Business Standard

HDFC converts warrants into equity shares

The conversion price was fixed at Rs 3,000, based on the face value of Rs 10 per share then

Read more on:    Hdfc | Ncds | Nse | Converts Warrants | Equity Shares
Related News

Housing Development Finance Corp (), the largest mortgage lender in the country, on Monday said it had converted the warrants issued along with non-convertible debentures () in August 2009 into .

In the first ever composite issue of NCDs with warrants by any company in Asia, excluding Japan, HDFC had issued 10 million warrants at Rs 275 each. The conversion price was fixed at Rs 3,000, based on the face value of Rs 10 per share then.

Later, the firm decided to split its Rs 10 stocks into five shares of Rs 2 each. So, the number of warrants were increased to 55 million and the issue and conversion prices were revised to Rs 55 and Rs 600, respectively. The warrant holder had the right to exchange his warrants with equity shares by August 24.

“Pursuant to the exchange of the warrants, the corporation issued and allotted 5.47 crore equity shares of Rs 2 each and realised an amount of Rs 3,285 crore, representing 99.95 per cent of the warrants issued. The paid-up equity share capital of HDFC is Rs 308 crore and the balance in securities premium account stands at Rs 9,297 crore,” HDFC said in a statement.

“The proceeds from the exchange of warrants will be utilised to replace the zero coupon bonds and consequently the corporation will not earn any additional interest income on the amount raised,” it added.

HDFC shares have been quoting at a premium to the warrant price ahead of its conversion date. The shares on Monday closed at Rs 739.95 on the National Stock Exchange, up 1.2 per cent from the previous close.

Read more on:   
|
|
|
|

Read More

Spain plans to borrow $267 billion in 2013

Spain plans to borrow euro 207.2 billion ($267 billion) next year, the Budget Ministry said on Saturday.

Quick Links

News Rss icon

LIC Housing Finance takes over Orbit Corp's Mumbai property

Orbit's total amount outstanding is Rs 95.50 crore including interest, expenses and other charges

VCES a rare opportunity, make fresh start, says Chidambaram

The FM asked hose in trade and industry to seize the offer

Govt allows greater flexibility for pension fund investments

But the EPFO board would need to approve the changes before they become official

Back to Top