Housing Development Finance Corporation (HDFC) plans to raise Rs13,200 crore through a preferential issue and private placement. It will also issue equity shares through Qualified Institutional Payment (QIP) to raise up to Rs1,896 crore. That's a 2% discount to its closing share price on Friday.
The fund raising would be subject to approval of the members of the Corporation, it added.
The meeting commenced at 8.45 am and concluded at 9.55 am. The Singapore government fund will pick up 3.01 crore shares representing almost 1.8 per cent of the expanded equity base with an investment of Rs 5,200 crore. A committee of directors which approved the fund raising also recommended the issue of equity shares under a Qualified Institutions Placement (QIP) basis for an amount not exceeding Rs 1,896 crore.
HDFC said a GIC affiliate will buy about 30.1 million shares while a KKR affiliate will purchase nearly 9.3 million shares. Besides, it is also considering expanding into Health Insurance in a big way through HDFC Ergo General Insurance Company.
The preferential allotment will be made to Waverly Pte.
The announcement comes less than a month after HDFC said it would raise Rs 13,000 crore ($2 billion) to maintain its 21% stake in HDFC Bank, invest in other subsidiaries, explore opportunities in the health insurance sector and look for stressed assets in the real estate sector.
India's largest mortgage lender HDFC Ltd has bagged a Rs 11,104 crore investment from marquee investors - like private equity giant GIC Singapore, KKR, Canadian pension plan Ontario Municipal Employees Retirement System, Carmignac Group and Premji Invest.
In the statement, HDFC said it would also need capital to sponsor funds it has set up to invest in the equity and mezzanine debt of affordable housing projects, support capital requirements of its subsidiary companies as and when required and "capitalise on organic and inorganic growth opportunities in the affordable housing finance space".