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The country's largest mortgage lender HDFC Ltd on Tuesday announced raising more than Rs 14,000 crore through a qualified institutional placement (QIP) issue of equity shares, warrants and bonds.

The corporation in a release said it has raised Rs 10,000 crore through the issue and allotment of 5,68,18,181 equity shares of face value of Rs 2 each at a price of Rs 1,760 per equity share to qualified investors.

The issue price represents a discount of 1 per cent to the closing price of its equity shares on the BSE/NSE prior to the launch of the issue, HDFC said.

HDFC shares ended 1.48 per cent up at Rs 1,825.35 apiece on BSE on Tuesday.

The housing finance major issued non-convertible debentures and warrants to raise another Rs 4,000.03 crore.

"The issue has been oversubscribed overall. The equity shares and warrants offered in the QIP have been subscribed to by 326 diverse marquee institutional funds," said the Housing Development Finance Corporation Ltd.

Government of Singapore and Invesco Oppenheimer Developing Markets Fund were allotted more than 5 per cent of the equity shares offered in the QIP. Government of Singapore cornered 13.37 per cent (7,596,457 shares) and the latter 5.54 per cent (3,148,882 shares).

An amount of Rs 3,693 crore was raised through issue of redeemable non-convertible debentures (NCDs) at par, for a tenor of 3 years, carrying an annualised coupon rate of 5.40 per cent per annum, HDFC said.

It issued 36,930 secured redeemable NCDs of face value of Rs 10 lakh each due on August 11, 2023, carrying a coupon rate of 5.40 per cent payable annually.

Those who were allotted more than 5 per cent of the NCDs offered in the QIP were: Axis Bank, ICICI Bank, Kotak Mahindra Bank, Morgan Stanley Asia (Singapore) PTE and JM Financial Products Ltd.

Besides, the corporation has received Rs 307.03 crore upfront through the issue and allotment of 1,70,57,400 warrants at an issue price of Rs 180 per warrant, HDFC said.

The warrant holders can exercise the right to convert these into shares at the warrant exercise price of Rs 2,165 until August 10, 2023.

Those who subscribed to the warrants included SBI Blue Chip Fund, ICICI Prudential Banking and Financial Services, Reliance Ventures Ltd, Kotak Balanced Advantage Fund.

"The warrant issue price with the warrant exercise price represents a premium of 32 per cent to the closing price of the Corporation's equity shares on BSE/NSE prior to the launch," it said.

Of the total equity shares and warrants allotted, 89 per cent were towards long-only funds and 30 per cent to domestic institutional investors, HDFC said.

"Assuming all the warrants are exercised by investors within the next 3 years, the Corporation would receive an additional Rs 3,690 crore by way of securities premium. Accordingly, the maximum equity dilution possible under the issue would be up to 4.26 per cent of the enhanced equity share capital of the Corporation," it added.

HDFC said the proceeds of the issue will be used towards general corporate purposes and financing organic and inorganic business opportunities that may arise. It will be inclusive of funding expansion plans of subsidiary and associate companies of the Corporation.

"Pursuant to the allotment of equity shares, the paid-up share capital of the Corporation stands increased to Rs 358,28,53,976 consisting of 179,14,26,988 equity shares of Rs 2 each," HDFC said.

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