HDFC to raise up to Rs 13,000 crore via QIP
HDFC Board on Tuesday approved a plan to raise capital of up to Rs 13,000 crore through private placement or via qualified institutional placement (QIP) in the next one year. The capital raised will be utilised in buying shares of HDFC Bank for an amount worth Rs 8,500 crore via preferential issue. HDFC Currently holds about 21.02% of the paid-up equity share capital of HDFC Bank.
The fundraising will be either through fresh equity issue or convertible debentures or both, HDFC said in a stock exchange notice.
A committee appointed by the Board will decide how much money to invest in the bank, how much capital to raise and in what form with what kind of instruments, etc.