HDFC set to raise Rs 10k crore via issue of warrants, NCDs

The warrants and debentures are being issued only to qualified institutional buyers

Mortgage lender Housing Development Finance Corporation (HDFC) will issue 36.50 million warrants at Rs 14 a warrant, to raise about Rs 5,000 crore. The holder can exchange one warrant for one equity share of HDFC at Rs 1,475 a share.

It is also having a simultaneous issue of non-convertible debentures (NCDs, of 1.43 per cent coupon rate), raising another Rs 5,000 crore. These warrants and debentures are being issued only to qualified institutional buyers.

The warrants can be exchanged at any time before the expiry of 36 months from the date of its allotment, HDFC informed the BSE exchange.

The simultaneous issue of NCDs and warrants opened on Thursday.  HDFC has allotted 7,300 warrants per NCD. The maximum dilution that could take place in future, assuming all the warrants are converted into equity shares, would be up to 2.2 per cent of the expanded equity share capital. Both instruments will be listed on the BSE and National Stock Exchange.

The issues are being managed by Kotak Mahindra Capital, Axis Bank, Citigroup Global Markets, HDFC Bank, ICICI Bank, ICICI Securities, IDFC Securities, IndusInd Bank and JM Financial Institutional Securities.