HDFC takes centre stage

Mumbai: Shares of HDFC on Monday soared above 6 per cent with its market capitalisation zooming over Rs 17,300 crore as investors cheered the company's fund raising plans.

On the BSE, the shares of the country's largest housing finance company hit a record high during intra-day trades.

The counter opened in the green at Rs 1,781 and hit the day's high of Rs 1,886. It finally closed at Rs 1,869.95 - marking a gain of Rs 108.70, or 6.17 per cent, over the last close.

Following the uptick in the stock, the market capitalisation of the company improved Rs 17,365 crore to Rs 2,98,741.62 crore.

More than 14 lakh shares were transacted on the bourse compared with the two-week average quantity of over two lakh shares.

On the NSE, the stock jumped to a 52-week high of Rs 1,886.80, up 7.10 per cent over its last close. It finally ended at Rs 1,863, up 5.80 per cent over its previous close.

After its board meeting last Saturday, the directors of HDFC had given their approval to raise over Rs 13,000 crore, which will be the first fund raiser by the mortgage lender in over a decade.

The board approved the issuance of 6.43 crore shares on a preferential basis at a price of Rs 1,726.05 per share, aggregating to Rs 11,103.66 crore to various investors, including the Azim Premji Trust.

A total of 3.01 crore shares will be issued to an affiliate of GIC Waverly Pte, 1 crore shares to the administrator of the pension plan for Ontario's municipal employees (Omers) of Canada and about 92 lakh shares to KKR firm Silverview Investment Pte.

The board also approved the issuance of shares through a qualified institutional placement such that the total amount to be raised shall not exceed Rs 1,896 crore.

HDFC had said that the objective of raising capital was to participate in the preferential issue of HDFC Bank up to an amount not exceeding Rs 8,500 crore. This would enable HDFC to maintain its current holding in HDFC Bank. HDFC holds around 26 per cent in HDFC Bank.

HDFC is also looking at inorganic opportunities in the health insurance sector in association with its subsidiary HDFC ERGO General Insurance Company.

HDFC Bank