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Housing Development Finance Corp Ltd plans to raise about Rs 11,100 crore ($1.75 billion) from a preferential share sale to investors including affiliates of Singapore state investor GIC and private equity KKR & Co. LP. A committee of directors of the mortgage lender on Saturday approved selling 64.3 million shares at Rs 1,726.05 a piece to the investors, according to a stock exchange filing. HDFC shares closed at Rs 1,760.95 on Friday.
Separately, HDFC will also sell shares to institutional investors through a so-called Qualified Institutions Placement to raise up to Rs 1,896 crore, it said.
HDFC's fund-raising is mainly aimed at investing in a preferential share issue by HDFC Bank, which will help the mortgage lender maintain its about 21 per cent stake in the bank. Last month, the mortgage lender secured board approval to raise as much as Rs 13,000 crore . It said it may need capital for health insurance and acquisition of stressed assets in the real estate sector. The preferential share sale announced on Saturday comprises 3.9 per cent of the company's enhanced share capital after the issue, HDFC said.
A GIC affiliate will buy about 30.1 million shares, while the administrator of the pension plan for Canada's Ontario municipal employees is buying 10 million shares. The KKR affiliate will buy about 9.3 million shares, HDFC said.
The other investors subscribing to the preferential sale are Carmignac Group of France and India's Premji Invest.
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