Housing Development Finance Corporation Ltd (HDFC), the multi-faceted finance company, has decided to dilute a maximum 3.5 per cent equity to Qualified Institutional Buyers (QIBs) to raise over Rs 4000 crore.
HDFC informed the BSE that the Committee of Directors (CoD) of the company at its meeting held on August 17, 2009, has decided to make an issue of the following securities to Qualified Institutional Buyers (QIBs) on a Qualified Institutions Placement (QIP) basis, in terms of the Special Resolution passed by the Shareholders at the 32nd Annual General Meeting held on July 22, 2009 and in accordance with Chapter XIII-A of the SEBI DIP Guidelines:
- Issue of 109,53,706 Warrants with a right exercisable by the warrant holder to exchange the said warrant with one equity share of face value of Rs 10 each of the Corporation, any time before the expiry of a period of 3 years from the date of its allotment;
- Issue of 20,000 Zero per cent. Secured Redeemable Non-Convertible Debentures (NCDs) of the face value of Rs 10,00,000 each due August 2011 for cash aggregating to Rs 2,000 crore; and
- Issue of 20,000 Zero per cent. Secured Redeemable Non-Convertible Debentures (NCDs) of the face value of Rs 10,00,000 each due August 2012 for cash aggregating to Rs 2,000 crore.
The maximum dilution that could take place in future, if all the Warrants are exchanged for equity shares of the Corporation at the said Warrant Exchange Price, would be up to 3.5% of the expanded equity share capital of the Corporation.
Axis Bank Ltd, Citi Global Markets India Pvt. Ltd, Glodman Sachs (India) Securities Pvt. Ltd, Hongkong & Shanghai Banking Corporation Ltd, JM Financial Consultants Pvt. Ltd, Kotak Mahindra Capital Company Ltd and Nomura Financial Advisory & Securities (India) Pvt. Ltd are the Book-Running Lead Managers while AZB Partners, Mumbai are the Legal Advisors to the Corporation, Amarchand & Mangaldas & Suresh A. Shroff & Co. Mumbai and Linklaters Allen & Gledhill, Singapore are the Legal Advisors to the Book-Running Lead Managers to the said transaction.
