Sharemasterindia.com: Housing Development Finance Corporation shares surged as much as 2 per cent to an intraday high of Rs 1,196 on Tuesday following the mortgage lender's announcement to raise up to Rs 5,000 crore in fresh funds.
HDFC will raise the money through non-convertible debentures and warrants from institutional investors. The money will be used to fund HDFC's business growth.
The NCDs will be issued to qualified institutional buyers, HDFC said. The warrants could be exchanged with equity shares of HDFC within a period of 5 years at the discretion of the board, the company said.
"The maximum dilution that could take place in future, if all the warrants are exchanged into equity shares of the Corporation, would be 2.2 per cent of the expanded equity share capital of the corporation," HDFC said.
Analysts say the warrants would take care of the future tier-1 capital requirements of the mortgage lender.
The proposed NCDs and warrants will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), HDFC said.
As of 11.27 a.m., shares in HDFC traded 0.8 per cent higher at Rs 1,188 apiece, outperforming the broader Nifty, which was down 0.11 per cent
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