HDFC raises Rs 111 billion from marquee investors

HDFC Ltd on Saturday said in a filing that it would issue 64.3 million shares to a set of marquee investors to raise at least Rs 111.04 billion.

The plan is to raise an amount not exceeding Rs 130 billion, including a QIP offering of Rs 18.9 billion, the largest mortgage finance company said. The per share price works out to be Rs 1726.05, based on SEBI pricing formula.

The preferential allotment represents 3.87 per cent of the company's market capital. The allotment would be finished within a fortnight of passing a special resolution of shareholders through postal ballot.

The company said the primary objective of the fundraising exercise is to participate in the preferential issue of HDFC Bank Ltd up to Rs 85 billion.

Besides, HDFC Bank said it was exploring “inorganic opportunities in the health insurance sector in conjunction with subsidiary, HDFC Ergo General Insurance Co Ltd. And is evaluating opportunities in the acquisition and resolution of stressed assets in the real estate sector.”

 HDFC Ltd will also need capital to sponsor funds in the equity and mezzanine debt of affordable housing projects, and to support its subsidiaries for possible acquisitions in the affordable housing segment.

The 10 investors are Waverly Pte Ltd, OMERS Administration, Silverview Investments, Carmignac (its various arms), Azim Premji Trust and PI Opportunity Fund.