HDFC to raise Rs4,000 crore through QIP

Housing Development Finance Corporation Ltd. (HDFC), the country's prime home loan lender plans to raise Rs4,000 crore through private placement of securities, for augmenting the long-term resources, the company said in a statement.

HDFC's shareholders approved the fund raising scheme involving qualified institutional placement (QIP) of warrants along with secured non-convertible debentures to qualified institutional buyers (QIB), at the home financier's annual general meeting in Mumbai yesterday.

The warrant holders will have the option to exchange the warrants in the future for up to a maximum of 1,09,53,706 equity shares of Rs10 each constituting 3.5 per cent of the expanded equity share capital of the company. The strike price for the warrants would be at a premium to the current market levels.

The company reported a growth of 23 per cent in loan approvals amounting to Rs12,559 crore for the June quarter compared to the Rs9,996 crore for the corresponding quarter last year. Loan disbursals also grew by 21 per cent to Rs8,688 crore from Rs7,204 crore.

The net profit for the first quarter rose to Rs565 crore from Rs468 crore, 21 per cent higher compared to the previous year.

For the year 2008-09, HDFC's total loan approvals amounted to Rs49,166 crore as compared to Rs42,520 crore in 2007-08, registering a growth of 16 per cent. Disbursals also increased by around 21 per cent to Rs39,650 crore from Rs32,875 crore.