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

BS Reporter  |  Kolkata 

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

In the first ever composite issue of with warrants by any company in Asia, excluding Japan, 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 by August 24.

“Pursuant to the exchange of the warrants, the corporation issued and allotted 5.47 crore 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 is Rs 308 crore and the balance in securities premium account stands at Rs 9,297 crore,” 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.

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.

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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

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

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

In the first ever composite issue of with warrants by any company in Asia, excluding Japan, 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 by August 24.

“Pursuant to the exchange of the warrants, the corporation issued and allotted 5.47 crore 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 is Rs 308 crore and the balance in securities premium account stands at Rs 9,297 crore,” 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.

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.

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Business Standard
177 22

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

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

In the first ever composite issue of with warrants by any company in Asia, excluding Japan, 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 by August 24.

“Pursuant to the exchange of the warrants, the corporation issued and allotted 5.47 crore 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 is Rs 308 crore and the balance in securities premium account stands at Rs 9,297 crore,” 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.

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.

image
Business Standard
177 22

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