HDFC jumps after fund raising

HDFC rose 4.04% to Rs 1,247.75 at 11:38 IST on BSE after the company said it raised over Rs 10000 crore through mix of warrants and non-convertible debentures to qualified institutional investors.

The announcement was made after market hours on Thursday, 1 October 2015.

Meanwhile, the BSE Sensex was up 387.54 points, or 1.48%, to 26,608.49.

On BSE, so far 41,000 shares were traded in the counter, compared with an average volume of 1.48 lakh shares in the past one quarter.

The stock hit a high of Rs 1,249.80 and a low of Rs 1,206 so far during the day. The stock hit a record high of Rs 1,399.80 on 4 March 2015. The stock hit a 52-week low of Rs 975.25 on 16 October 2014.

The stock had outperformed the market over the past one month till 1 October 2015, rising 3.54% compared with 2.04% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 7.25% as against Sensex's 6.42% decline.

The large-cap company has an equity capital of Rs 315.54 crore. Face value per share is Rs 2.

HDFC announced that it allotted 3.65 crore warrants at an issue price of Rs 14 each, at an exercise price of Rs 1,475 per share. The warrant issue price of Rs 14 each would neither be adjusted against the exercise price nor would be refundable, the filing said.

The warrant conversion price of Rs 1,475 is at a premium of 23% compared to HDFC stock's closing price of Rs 1,199.25 on BSE on Thursday, 1 October 2015.

Besides, it has raised Rs 5000 crore through issuance of non-convertible debentures (NCDs). On NCDs, the filing said 5,000 debentures of face value of Rs 1 crore each due in March 2017, for cash at par aggregating to Rs 5000 crore carry an annual coupon rate of 1.43%.

In a separate announcement after market hours on Thursday, 1 October 2015, HDFC said it will announce its Q2 September 2015 results on 26 October 2015.

HDFC said its profit on sale of investments in Q2 September 2015 was Rs 48 crore compared to Rs 103 crore in the corresponding quarter in the previous year.

Income from dividend in Q2 September 2015 was Rs 425 crore compared to Rs 104 crore in the corresponding period of the previous year.

HDFC, under the loan assignment route, sold loans amounting to Rs 2864 crore in Q2 September 2015 to HDFC Bank compared to Rs 844 crore during the corresponding quarter of the previous year.

Loans sold in the preceding twelve months amounted to Rs 12969 crore, HDFC added.

HDFC's net profit rose 1.2% to Rs 1360.98 crore on 9.4% rise in total income to Rs 7068.28 crore in Q1 June 2015 over Q1 June 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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