HDFC to raise Rs 5000 cr through NCDs

HDFC on Wednesday (6 May) said it plans to raise up to Rs 5,000 crore by issuing secured redeemable non-convertible debentures on private placement basis to augment its long-term resources.

Housing Development Finance Corporation (HDFC) after market hours on Wednesday (6 may) said it will issue secured redeemable non-convertible debentures on private placement basis with an issue size of Rs 2,500 crore and an option to retain over-subscription of up to Rs 2,500 crore, according to a regulatory filing.

The coupon on the bonds, to be maturing in December 2021, has been fixed at 7.06% per annum. The object of the issue is to augment the long-term resources of the Corporation. The proceeds of the present issue would be utilised for financing /refinancing the housing finance business requirements of the Corporation, HDFC said.

The bid opening date is set at 11 May 2020. Credit rating agencies Crisil and ICRA have rated these NCDs as 'AAA'.

HDFC is engaged in financing by way of loans for the purchase or construction of residential houses, commercial real estate and certain other purposes, in India.

Shares of HDFC were down 1.04% at Rs 1716 on BSE. The scrip has traded in the range of Rs 1708.60 and Rs 1748 so far during the day.

On the technical front, the stock's RSI (relative strength index) stood at 49.20. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 20-day moving average (DMA) placed at 1680.11 but below its 50-day moving average (DMA) placed at 1832.44. These levels will act as a support and resistance in near term.

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