HDFC To Launch Rs 1,900 Crore QIP This Week
The demand and initial feedback from large investors is quite strong, one of them said.
India's largest mortgage lender Housing Development Finance Corporation Ltd. is set to sell shares to institutional investors to raise about Rs 1,900 crore as part of its Rs 13,000-crore plan to mop up funds to invest in its banking and other subsidiaries.
The housing finance company will launch a qualified institutional placement this week, two people privy to the proposed transaction told BloombergQuint on condition of anonymity. The demand and initial feedback from large marquee investors is quite strong, one of them said.
HDFC earlier raised Rs 11,000 crore through a mix of preferential and warrant issues from a clutch of investors like private equity firm KKR, Singapore government’s sovereign fund GIC, and Azim Premji’s family office PremjiInvest. Its board had approved raising another Rs 1,896 crore via a QIP.
A company spokesperson declined to comment in response to BloombergQuint’s phone calls.
About Rs 8,500 crore of the funds raised by HDFC is expected to be used to subscribe to the preferential allotment of its banking arm HDFC Bank Ltd. The rest will be invested in stressed real estate assets, affordable housing projects and the health insurance business.