Housing Development Finance Corporation (HDFC) share price gained over 1.5 per cent to trade at day’s high of Rs 1,804.85 apiece after the company informed that it has launched a mega qualified institutional placement (QIP) to raise Rs 14,000 crore on Wednesday. The committee of directors in a meeting approved and declared the opening of the issue. It also adopted the preliminary placement document, in connection with the issue. HDFC has fixed a floor price of Rs 1,838.94 per equity share for the issue. The company’s meeting of the committee of directors will be held on August 10, to consider and determine the issue price of securities to be issued by way of the issue to qualified institutional buyers.
HDFC quoted a 52-week low of Rs 1,473,10 apiece in March this year, since then the stock has rallied over 22 per cent, taking the total market capitalisation to Rs 3,10,529.02 crore. “The issue would comprise for an amount aggregating up to Rs 14,000 crore by way of issue of equity shares and warrants and up to Rs 9,000 crore by way of issue of secured redeemable non-convertible debentures (NCD),” it said in an exchange filing. It also added that the corporation may offer a discount of not more than 5 per cent of the said floor price.
At 10 AM, HDFC shares were trading 0.66 per cent higher at Rs 1,788.70 apiece, as compared to a 0.61 per cent rise in the benchmark S&P BSE Sensex. The board of directors of HDFC had approved raising funds by way of issuance of equity shares and secured redeemable non-convertible debentures (NCDs) simultaneously with warrants aggregating up to a cumulative amount of Rs 14,000 crore on a qualified institutional placement basis on July 30.
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