HDFC gains after announcing plans to raise funds

HDFC rose 1.5% to Rs 1,413.25 at 9:50 IST on BSE after the company announced that it intends to raise Rs 1340 crore through issue of non-convertible debentures on private placement basis.

The announcement was made after market hours yesterday, 21 September 2016.

Meanwhile, the S&P BSE Sensex was up 328.50 points or 1.15% at 28,835.92.

On BSE, so far 4,847 shares were traded in the counter as against average daily volume of 1.54 lakh shares in the past one quarter. The stock hit a high of Rs 1,418 and a low of Rs 1,406.15 so far during the day. The stock had hit a record high of Rs 1,463.25 on 7 September 2016. The stock had hit a 52-week low of Rs 1,012 on 25 February 2016. The stock had outperformed the market over the past one month till 21 September 2016, advancing 1.65% compared with 1.53% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 12.48% as against Sensex's 6.32% rise.

The large-cap company has equity capital of Rs 316.71 crore. Face value per share is Rs 2.

HDFC announced that the company intends to raise Rs 1340 crore through issue of senior, secured, redeemable, non-convertible debentures on private placement basis. HDFC said that the debentures of face value of Rs 1 crore will carry a coupon rate of 7.67% per annum and will have a tenor of 1 year 2 months. The object of the issue is to augment the long term resources of the company. The proceeds of the issue would be utilised for financing/refinancing the housing finance business requirements of the company. The issue will open on 23 September 2016 and closes on the same day.

HDFC's net profit rose 37.5% to Rs 1870.73 crore on 19.4% growth in total income to Rs 8393.33 crore in Q1 June 2016 over Q1 June 2015.

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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