InvestorQ : Why is HDFC also joining the fund raising bandwagon to raise Rs.14,000 crore?
Ria Jain made post

Why is HDFC also joining the fund raising bandwagon to raise Rs.14,000 crore?

Answer
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Anu Biswas answered.
3 months ago


HDFC will now join other large cap companies like RIL, Bharti and Kotak Bank that have been aggressively raising capital to shore up their balance sheets to ward off any challenges in the post COVID scenario. HDFC will raise this money through a combination of equities, FCCB, NCD, partially convertible debentures etc in multiple tranches.

HDFC is raising this corpus to augment its long term resources, as well as to set aside capital for organic and inorganic business growth. It also wants to maintain sufficient liquidity and for general corporate purposes. HDFC has a capital adequacy of 17.7% with 16.6% as Tier-1 capital, so statutorily it is quite comfortable.