Mortgage lender HDFC Ltd on Monday said its board has approved raising funds through non-convertible debentures (NCDs) in tranches aggregating to Rs 57,000 crore.
The board has cleared 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.
This 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.
Besides, it said, "the board has approved increase in the overall borrowing powers 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 by way of postal ballot."
The decision was taken since the outstanding borrowings of HDFC as on date is approximately Rs 5.70 lakh crore and it would need to borrow further for its business purposes till the effective date of merger.
It is expected that the parent HDFC Ltd would merge into subsidiary HDFC Bank by the third quarter of the next financial year.
Termed as the biggest transaction in India's corporate history, HDFC Bank on April 2022 agreed to take over the biggest domestic mortgage lender in a deal valued at about USD 40 billion, creating a financial services titan.
Centre gets huge dividend tranche of Rs 5,001 crore as dividend from ONGC
Debt fund taxation changes to impact corporate bond demand: Fund managers
Vodafone board to discuss Rs 1,600 cr debenture issue for ATC on Jan 31
Is it time to move away from equities and focus on debt? What analysts say
Pak may exit FATF's grey list during watchdog's Oct 20-21 plenary: report
IT security incident to impact some of its businesses' revenues: Sun Pharma
SoftBank-backed Oyo Hotels to reduce planned IPO amid tech headwinds
Wipro Consumer Care invests unknown sum in women's health startup Gynoveda
IDFC First Bank partners Crunchfish to demonstrate offline retail payments
Apple's vendor planning to set up second factory, Pegatron explained
The proposed entity will have a combined 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.
Once the deal is effective, HDFC Bank will be 100 per cent owned by public shareholders, and existing shareholders of HDFC will own 41 per cent of the bank. Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares held.
Following the merger, the combined balance sheet will be Rs 17.87 lakh crore and the net worth will be Rs 3.3 lakh crore, as of the December 2021 balance sheet. As of April 1, 2022, the market capitalisation of HDFC Bank was Rs 8.36 lakh crore (USD 110 billion) and that of HDFC Rs 4.46 lakh crore (USD 59 billion).
Post-merger HDFC Bank will be twice the size of ICICI Bank, which is the third-largest lender now.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)