HDFC gains after announcing fund raising plans

HDFC rose 1.8% to Rs 1,120 at 9:25 IST on BSE after the company announced that it has filed term sheet for issuing secured redeemable non-convertible debentures worth Rs 2000 crore on private placement basis.

The announcement was made after market hours yesterday, 2 March 2016.

Meanwhile, the BSE Sensex was up 195.13 points, or 0.8%, to 24,438.11.

On BSE, so far 20.266 shares were traded in the counter, compared with an average volume of 1.41 lakh shares in the past one quarter. The stock hit a high of Rs 1,134.80 and a low of Rs 1,111. 35 so far during the day.

HDFC said that the coupon rate on debentures is 8.75% per annum having issue price of Rs 1 crore per debenture. The tenor of the debentures is five years with redemption date being 4 March 2021. The issue opens on 4 March 2016 and closes on the same day. The object of the issue is to augment long term resources of the company, HDFC said. The proceeds of the present issue would be utilized for financing/refinancing the housing finance business requirements of the company.

On a consolidated basis, HDFC reported 11% rise in net profit to Rs 2419 crore on 3% rise in total income to Rs 12306.52 crore in Q3 December 2015 over Q3 December 2014.

HDFC is India's first retail housing finance company and is currently one of the largest originators of housing loans in the country.

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