HDFC to raise up to Rs 13,000 cr via equity, convertible instruments

HDFC needs to participate in HDFC Bank's preferential offer not exceeding Rs 8,500 crore to maintain roughly its shareholding in the latter

Housing Development Finance Corporation (HDFC), the country’s largest mortgage lender, is planning to raise up to Rs 13,000 crore by issuing equity shares and other securities.

It will use the proceeds to invest up to Rs 8,500 crore in HDFC Bank to retain its stake at 21 per cent in the latter. 

It will also invest in healthcare insurance, buy distressed real estate assets, fund inorganic growth in the affordable housing finance sector, and support growth plans of subsidiaries.

The board of directors of HDFC at its meeting on Tuesday gave approval for raising funds by issuing equity shares and/or other permissible securities