Largest mortgage lender Housing Development Finance Corporation (HDFC) at its meeting held on Friday 19th June 2020 said its committee of directors has approved raising up to Rs.14,000 crore through equity shares, compulsorily convertible debentures or non-convertible debentures along with warrants, and foreign currency convertible bonds, etc.
In also addition, the company said its committee of directors approved the plan in a meeting, and approval of members of the corporation through postal ballots will be taken in due course.
HDFC said in an exchange filing that “The said funds are being raised to augment the long-term resources of the corporation, to finance organic or inorganic opportunities that may arise in financial services including housing finance or an area where its subsidiaries operate, to maintain sufficient liquidity and for generating corporate purposes of the corporation.”
On Friday, HDFC’s shares closed 0.87% lower at Rs. 1839.10 on the BSE, the other side benchmark Sensex rose 1.53% and close at Rs. 34,732.
For the March quarter, HDFC reported a 21.97% year-on-year (YoY) fall in net profit at Rs. 2,233 crores.
And in the same quarter, last year’s profit fell as dividend income received during the quarter was a mere Rs. 2 crores compared with Rs. 537 crore.