HDFC launches Rs 1,900cr QIP

Mumbai: Home loan major HDFC opened its

qualified institutional placement

(

QIP

) offering on Tuesday evening to raise nearly Rs 1,900 crore at a price floor price of close to Rs 1,825 per share, a marginal discount to its closing price of Rs 1,827 on the BSE.

HDFC’s current fund-raise through the QIP offering is part of its Rs 13,000-crore overall plan, which is aimed primarily to invest in HDFC Bank to maintain the housing finance major’s holding in the bank. The final pricing for the issue, which is offered only to large

institutional investors

, will be done on March 5.

As of December-end, HDFC was holding around 21% in the largest private sector lender by market value when one considers the shares held through American depositary receipts (

ADRs

), global depositary receipts (

GDRs

), etc. HDFC will also invest part of the new fund to enter newer segments like stressed assets and health insurance, the company had said in December.

HDFC will raise the balance amount of about Rs 11,100 crore through a preferential allotment. Since HDFC Bank is also going for fund-raising, aggregating about Rs 24,000 crore, to maintain its holding at 21% level, HDFC will need about Rs 8,500 crore. This is the home finance major’s first fund-raising programme since 2007.

On December 20, the board of HDFC had approved its plan to mobilise funds through a combination of QIP and preferential allotment.


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