HDFC trades firm ahead of committee meeting for fund raising

The stock was trading 1% higher at Rs 1,756 on BSE ahead of committee meeting on January 13, 2018 to consider fund raising plans.

Housing Development Finance Corporation (HDFC) was trading 1% higher at Rs 1,756 on BSE ahead of committee meeting on January 13, 2018 to consider fund raising plans.

“A meeting of the committee of directors of Corporation will be held on Saturday, January 13, 2018 to consider and approve, the details of preferential issue and qualified institutions placement (QIP), “HDFC said on January 10, 2018 in a regulatory filing.

The board of directors of HDFC at its meeting on December 19, 2017 gave approval for raising funds by issuing equity shares and/or other permissible securities of an amount not exceeding Rs 130 billion.

It will use the proceeds to invest up to Rs 85 billion in HDFC Bank to retain its stake at 21% in the latter. It will also invest in healthcare insurance, buy distressed real estate assets, fund inorganic growth in the affordable housing finance sector, and support growth plans of subsidiaries.

The stock hit an intra-day high of Rs 1,759 on BSE on Friday in intra-day trade. It touched an all-time high of Rs 1,805 on November 7, 2017 in intra-day deal.