InvestorQ : How is the HDFC fund raising of Rs.14,000 crore being structured?
prachi Patwardhan made post

How is the HDFC fund raising of Rs.14,000 crore being structured?

Answer
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2 months ago


India’s largest housing finance company, HDFC, launched its Rs.14,000 crore equity fundraising program during the week. It will be raised via the Qualified Placement Route or QIP route. Out of this issue, Rs.10,000 crore will be raised via the issue of NCDs while the remaining Rs.4,000 crore will be via the issue of warrants.

Warrants are like options on a stock. HDFC will issue these warrants to domestic mutual funds at a price of Rs.2200. This will be the price at which the warrant can be exercised. This is nearly 25% higher than the current market price. HDFC finances its organic and inorganic expansion plans with these funds. The warrants carry a coupon of 5% and tenure will be of 18 months.