The stock of HDFC hit a lifetime high of Rs. 1882.65 on the BSE, surging by 6.89% against its previous closing price of Rs. 1761.25 as last week the board of Housing Development Finance Corporation (HDFC) approved the Rs. 130 billion fund raising plan through QIP and preferential allotment.
On the NSE, the stock traded higher to reach a 52-week high of Rs. 1882.
The previous high for the stock of Rs. 1805 was last reached on November 7, 2017.
The board approved issuance of 64.33 million shares at a price of Rs 1726.05 per piece of face value of Rs. 2 per share on a preferential basis that totals to Rs. 111 billion to different investors that includes Azim Premji Trust.
An additional 30 million shares shall be issued to GIC Waverly Pte affiliate, 10 million shares to the pension plan administrator for OMERS of Canada and 9.2 million shares to KKR firm Silverview Investment Pte.
In a release, the institution said, "The key objective of raising capital is to participate in the preferential issue of HDFC Bank up to an amount not exceeding Rs 85 billion. This would enable the Corporation to maintain its current shareholding in HDFC Bank".
At 2:23 pm, the stock was trading at Rs. 1878.30 and Rs. respectively on BSE and NSE.