Shares of HDFC fell as much as 4.33 percent to Rs 1,710 after the announcement on reduction in lending rates and that it will raise up to Rs 4,000 crore by issuing bonds on private placement basis. It is the second consecutive day of fall for the stock.
With effect from 12 June 2020, Housing Development Finance Corporation Ltd (HDFC) has reduced its Retail Prime Lending Rate (RPLR) on housing and non-housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 20 basis points, the mortgage lender said in a stock exchange filing on Friday.
"The change will benefit all existing HDFC retail home loan and non-home loan customers," it added.
On Thursday, the mortgage lender announced that it will raise up to Rs 4,000 crore by issuing secured redeemable non-convertible debentures on 15 June 2020. The issue is of Rs 2,100 crore size with the option to retain over-subscription up to Rs 1,900 crore, the company said in a regulatory filing.
"The object of the issue is to augment the long-term resources of the Corporation. The proceeds of the present issue would be utilized for financing/refinancing the housing finance business requirement of the Corporation," HDFC said.