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  Business   Companies  15 Jan 2018  HDFC surges over 6 pc as board approves fundraising plan

HDFC surges over 6 pc as board approves fundraising plan

PTI
Published : Jan 15, 2018, 12:55 pm IST
Updated : Jan 15, 2018, 12:55 pm IST

The stock surged to a high of Rs 1,876.80, up 6.56 per cent over its previous closing price on BSE.

Board approved issuance of 6.43 crore shares of face value of Rs 2 each on a preferential basis at a price of Rs 1726.05 per share. (Photo: YouTube)
 Board approved issuance of 6.43 crore shares of face value of Rs 2 each on a preferential basis at a price of Rs 1726.05 per share. (Photo: YouTube)

New Delhi: Shares of HDFC Ltd on Monday surged over six per cent to its 52-week high level after the company said it plans to raise up to Rs 13,000 crore via QIP and preference shares.

On January 13, HDFC said its board has approved raising up to Rs 13,000 crore primarily to maintain its holding in its banking arm and enter segments like stressed assets and health insurance.

The stock surged to a high of Rs 1,876.80, up 6.56 per cent over its previous closing price on BSE. On NSE, the stock jumped to a high of Rs 1,875.90, up 6.52 per cent over the last close. This will be the first equity raising by the country's largest pure-play mortgage lender in over a decade.

The board approved issuance of 6.43 crore shares of face value of Rs 2 each on a preferential basis at a price of Rs 1726.05 per share, aggregating to Rs 11,103.66 crore to various investors including Azim Premji Trust.

A total of 3.01 crore shares will be issued to an affiliate of GIC Waverly Pte, 1 crore shares to the administrator of the pension plan for Ontario's municipal employees (OMERS) of Canada and about 92 lakh shares to KKR firm Silverview Investment Pte, it said.

The board also approved issuance of such number of shares of face value of Rs 2 each through Qualified Institutional Placement (QIP) such that the total amount to be raised shall not exceed Rs 1,896 crore, subject to approval.  

Tags: hdfc bank, shares, revenue, funds
Location: India, Delhi, New Delhi