HDFC QIP issue begins; to raise Rs 4,000 cr through NCDs issue

NEW DELHI: Leading mortgage lender HDFC has begun institutional placement of debt securities, which aims to raise Rs 4,000 crore from the issue of non-convertible debentures, among others, today.

The company's QIP, which began today, is expected to close tomorrow, investment banking sources said. The amount to be raised from the issue of NCDs would be about Rs 4,000 crore, they added.

In addition, the mortgage lender is also looking to issue convertible warrants.

According to the investment bankers, HDFC would be offering secured redeemable NCDs due for August 2011 and 2012, among others.

These debentures would have zero per cent coupon rate. Further, the warrants that would be issued entitle the holder to subscribe for one equity share for each warrant held.

Last month, HDFC Chairman Deepak Parekh had said the firm is in the "process of undertaking a qualified institutions placement (QIP) offering of warrants simultaneously with secured redeemable non-convertible debentures to qualified institutional buyers".
Speaking to the shareholders at the company's annual general meeting, Parekh also said the secured redeemable non-convertible debentures will not exceed Rs 4,000 crore.