HDFC ltd on said it plans to raise a total of Rs90,000 crore from various instruments including non-convertible debentures and warrants to fund business expansion.
The board in exercise of its power has proposed issuance of “redeemable Non-Convertible Debentures (NCDs) and or any other hybrid instruments, which can be classified as being tier II capital, for cash up to an aggregate amount not exceeding Rs85,000 crore on a private placement basis,” HDFC said in a filing on the BSE.
Further, it would raise Rs5,000 crore through issue of redeemable NCDs simultaneously with warrants to qualified institutional buyers in one or more tranches.
The warrants, upon conversion to equity shares, would result in issuance of a maximum of 3.65 crore shares. It “would result in a maximum dilution of up to 2.2 per cent of the expanded share capital of the Corporation”.
The allotment of the warrants would be completed within 12 months from the date of passing the resolution by the AGM. The fund to the tune of Rs85,000 crore would be raised through issuance of redeemable non-convertible debentures or other hybrid instruments on a private placement basis. This would form part of its tier II capital.