HDFC proposes to raise Rs 5,000 crore via NCDs and warrants

HDFC Ltd, the country's largest mortgage lender, today said it has plans to raise Rs 5,000 crore by issuing non-convertible debentures (NCDs) and warrants to institutional investors to fund its business growth.

"... the committee of board of directors of the corporation at its meeting held today has approved a proposal for a simultaneous offering of secured redeemable non-convertible debentures of up to Rs 5,000 crore along with warrants," HDFC Ltd said in a BSE filing.

"The NCDs together with warrants will be issued to Qualified Institutional Buyers (QIBs) on a Qualified Institutional Placement basis," it added.

Warrant holders could exchange warrants with equity shares of HDFC within a period of 5 years at the discretion of the board, HDFC said.

"The maximum dilution that could take place in future, if all the warrants are exchanged into equity shares of the Corporation, would be 2.2% of the expanded equity share capital of the Corporation," the company said in the filing.

Both the proposed NCDs and warrants will be listed on BSE and NSE, HDFC said.

Meanwhile, it also added that issue of NCDs is subject to approval of shareholders at its Annual General Meeting to be held on July 28, 2015.

HDFC shares closed 1.78% lower at Rs 1,179.65 apiece on BSE on Monday.