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Khushi Patel made post

Why is HDFC laying out plans to raise as much as Rs.14,000 crore this year?

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Anjana Aiyar answered.
2 weeks ago

HDFC has firmed up 19 investment bankers to raise a sum of Rs.14,000 crore to bolster its balance sheet and ensure that it is adequately capitalized to tap the opportunities in the post-COVID scenario. Morgan Stanley, Kotak, BOFA, JP Morgan, Citi, Jefferies, ICICI Securities, BNP Paribas, CSFB, UBS, Goldman Sachs, SBI Caps and Axis are among the names.

This is biggest platoon of merchant bankers appointed by a large company. Earlier, RIL had appointed a total of 14 merchant bankers for its Rs.53,000 crore rights issue, which was a huge success. Earlier in 2012, Bharti Airtel had raised a much smaller sum of Rs.4118 crore but had appointed 13 merchant bankers for the exercise.

HDFC expects that once the moratorium on EMIs is lifted in August, or perhaps in December, the real face of the NPAs will be visible as the stress will be immediately visible. To avoid any exigency and also to have adequate capital to expand its loan book in future, HDFC is ensuring that it is adequately capitalized.