The Hindu Business Line : HDFC making preferential issue

Mumbai May 25 Housing Development Finance Corporation Ltd (HDFC) said it would raise Rs 3,114 crore through preferential issue of shares to two foreign investors, The Carlyle Group and Citigroup Strategic Holdings.

The global private equity firm, The Carlyle Group, will purchase 15.25 million new shares in HDFC at Rs 1,730 per share. On closure of the transaction, Carlyle will own a 5.6 per cent stake in HDFC.

The investment will be made by Carlyle Asia Partners, that manages over $2.5 billion and makes large investments across Asia, except in Japan. Carlyle was advised by investment bank DSP Merrill Lynch. HDFC has also made a preferential allotment to Citigroup Strategic Holdings, increasing its stake in HDFC from 9.15 per cent to 9.55 per cent.

HDFC shares were up 3.6 per cent on the BSE, at Rs 1,818.75.

The money being raised will support HDFC's continued investment in banking, life insurance and mortgage businesses, a HDFC note said. Subject to shareholders approval, the transaction is expected to close in July this year.

HDFC's board at its meeting on Friday also approved the increase of its authorised share capital from Rs 275 crore, consisting of 27.5 crore equity shares of Rs 10 each, to Rs 325 crore, consisting of 32.5 crore equity shares of Rs 10 each.

The consequential amendments to the Memorandum and Articles of Association of the company would be made, subject to approval from members at the Annual General Meeting to be held on June 27, the company told the BSE.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
HDFC making preferential issue

Forex reserves fall $9 million

`Pressure on rupee will continue'

IndusInd Bank Q4 net profit at Rs 21.4 cr

Mayorspeak

APSFC urged to bring down NPAs

Seven entities submit bids for pension fund managers' role

`Banks facing higher cost of deposits'

BoB plans opening 10 overseas branches

Union Bank to widen global reach

Banking ombudsman scheme amended

Separate audit department for cooperatives mooted in Kerala