HDFC to raise $1.75 bn from GIC, KKR, PremjiInvest, others

HDFC to raise $1.75 bn from GIC, KKR, PremjiInvest, others

By TEAM VCC

  • 13 Jan 2018
Credit: Mukul Mudgal

Housing Development Finance Corp Ltd said on Saturday it will raise about Rs 11,104 crore ($1.75 billion) by selling preferential shares to investors including Singapore sovereign wealth fund GIC and private equity firm KKR & Co.

PremjiInvest, the private investment arm of Wipro Ltd chairman Azim Premji, a Canadian pension fund and Carmignac Group of France will also take part in the share issue, India's biggest mortgage lender said in a stock-exchange filing.

HDFC will sell 64.3 million shares at Rs 1,726.05 apiece to the investors. That's a 2% discount to its closing share price on Friday. HDFC said it will also separately sell shares to institutional investors to raise up to Rs 1,896 crore.

The announcement comes less than a month after HDFC said it would raise Rs 13,000 crore ($2 billion) to maintain its 21% stake in HDFC Bank, invest in other subsidiaries, explore opportunities in the health insurance sector and look for stressed assets in the real estate sector.

The preferential share sale comprises 3.87% of HDFC’s enhanced share capital after the issue.

HDFC said a GIC affiliate will buy about 30.1 million shares while a KKR affiliate will purchase almost 9.3 million shares. The administrator of the pension plan for Canada’s Ontario municipal employees will buy 10 million shares. Five Carmignac entities will buy 9.14 million shares while PremjiInvest will purchase almost 5.8 million shares.