On Friday, housing finance company HDFC announced its plans to raise Rs. 14000 crore for augmenting the firm's long term capital in order to finance inorganic or organic growth business opportunities, maintaining ample liquidity and for general corporate purposes.
In current time, companies across sector are on a fund-raising spree to tackle the fall-out due to Covid 19.
"The said funds are being raised to augment the long-term resources of the corporation, to finance organic as well as inorganic business opportunities that may arise in financial services including housing finance as well as in areas where its subsidiaries operate, to maintain sufficient liquidity and for general corporate purposes of the corporation", said the mortgage company after market hours in an exchange filing.
Further the company pointed out that it would go on fund raising in different tranches through both equity and debt options. Options that the housing major is considering include shares or compulsory convertible debentures, non-convertible debentures along with warrants or foreign currency convertible bonds among others. Also, QIP and other allowed routes are also being mooted by the lender.
The instruments used for fundraising could be secured or unsecured, listed or unlisted conversely, they could be a combination of both, the lender stated. On June 16, the company informed the exchanges of its meet of the committee of directors to seek the approval of shareholders to raise funds.