Housing finance major HDFC on Saturday said that it plans to raise over Rs 11,000 crore ($1.7 billion) by preferential allotment of shares to global investors like Waverly, Premji Invest, Carmignac Group and Silverview Investments amongst others.
"The Committee of Directors of the Corporation... approved the issue of equity shares up to an aggregate amount not exceeding Rs 13,000 crore through a combination of a Preferential Allotment and Qualified Institutions Placement (QIP), subject to shareholders' approval through postal ballot," the company said in a statement.
According to the company, the aggregate capital infusion through the preferential allotment will be Rs 11,104 crore.
"The preferential allotment represents 3.87 per cent of the corporation's enhanced equity share capital post the issue," the statement said.
As per the statement, the "Committee of Directors also recommended the issue of equity shares under a QIP basis for an amount not exceeding Rs 1,896 crore".
The company had earlier disclosed that the capital raised will be utilised to participate in the preferential issue of HDFC Bank up to an amount of not exceeding Rs 8,500 crore.
"This would enable the corporation to maintain its current shareholding in HDFC Bank," the statement said.
The corporation did not participate in the last equity issue of HDFC Bank in February 2015.
"The corporation is also exploring inorganic opportunities in the health insurance sector in conjunction with its subsidiary, HDFC ERGO General Insurance Company Limited and is evaluating opportunities in the acquisition and resolution of stressed assets in the real estate sector," the statement added.
"The corporation will also need capital to sponsor funds it has set up to invest in the equity and mezzanine debt of affordable housing projects, support capital requirements of its subsidiary companies as and when required and capitalise on organic and inorganic growth opportunities in the affordable housing finance space."
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