HDFC Shares Gain 1.6% On Mega Rs. 14000 Crore QIP Launch

Shares of HDFC in early trade on Thursday (August 6, 2020) trade higher by 1.09% on QIP launch at the time of writing this report. The stock hit an early high of Rs. 1805.7 per share on the NSE.

HDFC Shares Gain 1.6% On Mega Rs. 14000 Crore QIP Launch

The mortgage lending company on August 5 launched a massive qualified institutional placement (QIP) for raising Rs. 14000 crore to strengthen its balance sheet and look for M&A opportunities amid the pandemic. The floor price for the issue has been fixed at Rs. 1838.94 per share.

It may offer not more than five percent discount of the offered floor price at its absolute discretion, the company said.

"The issue price would comprise for an amount aggregating upto Rs 14,000 crore by way of issue of equity shares and warrants and upto Rs 9,000 crore by way of issue of Secured Redeemable Non-Convertible Debentures," the company said in an exchange filing.

HDFC Ltd. now becomes the sixth corporate to come up with a QIP issue during the current pandemic times, joining others including Kotak Mahindra Bank, JM Financial, PI Industries, Axis Bank and Info Edge

For the June quarter of FY21, home financing company reported a decline in y-o-y net profit by 4.7% at Rs. 3051.5 crore. NII jumped during the review period 10.17% y-o-y to Rs. 3392 crore as against Rs. 3079 crore in Q1FY20.

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