HDFC Board Gives A Nod To Raise Rs 57,000 Crore Through NCDs Till The Merger Is Complete

The board of leading mortgage lender HDFC Ltd has approved raising funds through non-convertible debentures (NCDs) in form of tranches aggregating to Rs 57,000 crore, the Financial Express reported.

On Monday the board said it has cleared the issuance of unsecured, redeemable, non-convertible debentures under a Shelf Placement Memorandum, aggregating Rs 57,000 crore, in various tranches, on a private placement basis, HDFC said in a regulatory filing.

As per the filing, it is in accordance with the approval granted by the shareholders of the HDFC at the 45th annual general meeting held on June 30, 2022, it said.

As per the reporting, the board has approved to increase the overall borrowings of the corporation from Rs 6 lakh crore to Rs 6.50 lakh crore, outstanding at any point of time and recommended the same for approval of the members of the corporation through postal ballot.

This decision was taken as the outstanding borrowings of the corporation is approximately Rs 5.70 lakh crore and further borrowings would be needed for its business purposes till the effective date of merger with HDFC Bank.

The merger is one of the biggest transaction in India's corporate history. HDFC Bank agreed to take over the mortgage lender, valued at about USD 40 billion in April 2022. The combined entity will have an asset base of around Rs 18 lakh crore. The merger is expected to be completed by the second or third quarter of FY24, subject to regulatory approvals.