HDFC Share Up By 6% On First Equity Raising Approval

HDFC’s plans to raise up to Rs.13,000 crore through QIP and preference shares led to a six percent increase in its equity stocks as the announcement invoked a lot of interest in the buyers. One of the country’s top private banks said its board has affirmed raising up to Rs. 13,000 crore basically to keep up its holding in its banking arm and enter new sectors such as medical coverage and stressed assets.

HDFC Share Up By 6% On First Equity Raising Approval

The Bombay Stock Exchange saw the stock rising to a high of Rs. 1,876.80, representing a gain of 6.56% over its closing price on the day before. Furthermore, the stock bounced to a top level of Rs. 1,875.90, showing an appreciation of 6.52% as compared to the last closing price on the National Stock Exchange.

The nation’s biggest pure play contract bank is raising money through stocks for the first time in over ten years. 6.43 crore shares of face estimation of Rs. 2 each will be issued as approved by the board with each share being priced at Rs.1726.05 on a preferential basis. This will help them collect Rs. 11,103.66 crore to different investors including Azim Premji Trust.

A sum of 3.01 crore offers will be issued to a partner of GIC Waverly Pte, 1 crore offers to the head of the benefits anticipate Ontario’s metropolitan workers (OMERS) of Canada and around 92 lakh offers to KKR firm Silverview Investment Pte, it said.

The board additionally endorsed issuance of such number of offers of face estimation of Rs. 2 each through Qualified Institutional Placement (QIP) with the end goal that the aggregate sum to be raised should not surpass Rs. 1,896 crore, depending on it being approved. We’ll see how the stock price of HDFC responds to this in the coming days