HDFC Bank, HDFC Securities to pick up stake in Borderless Softtech

HDFC Bank alongwith its subsidiary HDFC Securities will pick up stake worth Rs 6.9 crore in backend software infrastructure development company Borderless Softtech, the bank said on Tuesday.

For this, the bank said it has executed an agreement for subscribing 8,108 compulsory convertible cumulative preference shares (CCCPS) of face value of Rs 10 each of Borderless at a premium of Rs 606.60 directly for consideration of Rs 616.60 per piece.

Indirectly, its subsidiary HDFC Securities will acquire 1,03,989 optionally redeemable compulsory convertible cumulative preference shares (ORCCCPS) of Borderless at the same valuation.

The acquisition will happen at a cash consideration of Rs 49,99,392 by HDFC Bank and Rs 6,41,19,617 by HDFC Securities.

Borderless facilitates global fractional investing in US listed stocks, funds and ETFs (exchange traded funds).

"Post investment, bank will hold in aggregate 7.76 per cent of the shareholding of Borderless on a fully diluted basis, directly and indirectly, by way of subscription to 8,108 CCCPS of face value of Rs 10 each fully paid up by itself and 1,03,989 in ORCCCPS of face value of Rs 10 each fully paid up," HDFC Bank said.

Stock of HDFC Bank closed 0.28 per cent down at Rs 1,484.35 apiece on BSE.