HDFC arm HBD Financial Services to raise up to Rs 350 cr

HDFC Bank's subsidiary HBD Financial Services plans to raise up to Rs 350 crore through issuance of debentures on a private placement basis.
"The company now intends to raise its seventh tranche of Rs 250 crore with greenshoe option to retain oversubscription up to Rs 100 crore, in aggregate on a private placement," the company said in a BSE filing today.
According to statement, the securities under this tranche will be allotted by the consent of the Debenture Allotment Committee on April 13, 2016.
A greenshoe option is a provision in an underwriting agreement that gives the underwriter the right to sell investors more shares than originally planned by the issuer.

A greenshoe option can provide additional price stability to a security issue because the underwriter has the ability to increase supply and smoothen price fluctuations if demand surges.
The company had secured approval from its board of directors to borrow funds by issue of secured redeemable non-convertible debentures on a private placement basis, in one or more tranches, up to Rs 5,000 crore at their meeting held on July 15, 2015.
BSE had provided in-principle approval for the issue on December 8, 2015.