HDFC to raise Rs 4,301 crore through issue of NCDs

MUMBAI: HDFC on Thursday announced that it would raise Rs 4,301 crore through issue of non-convertible debentures to qualified institutional buyers. (Watch)

"This is first-of-its-kind Qualified Institutional Placement (QIP) issue as we are offering a combination of debt and warrants," HDFC's Vice-Chairman and Managing Director Keki Mistry told reporters here.

"The issue has a size of Rs 4,301 crore and is targeted at domestic investors, including banks, insurance and mutual funds, as we still do not have FIPB approval," Mistry said.

Out of the Rs 4,301 crore, Rs 2,000 crore represents zero coupon Non-convertible Debentures (NCDs) with a two-year term and an annualised rate of 7.15 per cent. This rate is equivalent to an interest rate of 6.93 per cent on a monthly compounded basis, he said.

Another Rs 2,000 crore is also a zero coupon NCD with a three-year debt and an annualised YTM of 7.85 per cent, or a monthly compounded interest rate of 7.58 per cent.

Along with this, HDFC had issued around 1.09 crore warrants at a price of Rs 275 per warrant.