HDFC gains on board nod to raise upto Rs 5,000 crore

The board has approved issue of NCDs/warrants upto Rs 5,000 crore

Shares of HDFC were up nearly 3% at Rs 1,349 after the company's board approved raising upto Rs 5,000 crore through issue of secured redeemable non-convertible debentures and warrants to qualified institutional buyers.

The warrants, upon exercise, would result in an issuance of a maximum of 3.65 crore equity shares of face value Rs 2 each of the company, and the new equity shares to be issued would result in a maximum dilution of up to 2.2% of the expanded issued and paid-up equity capital, the company said in a release.

The floor price of the equity shares to be issues pursuant to exercise of warrants, shall be decided by the board in accordance with the relevant provisions of the ICDR (Issue of Capital and Disclosure Requirements), Regulations, the release added.

The stock opened at Rs 1,320 and touched a high of Rs 1,352. At 12:20PM, over 1.2 million shares were traded on both the stock exchanges.