HDFC Life Insurance to mull Rs 600 crore fundraising plan on July 23; June quarter results eyed

In April this year, the company had received in-principle approval from the board for this fundraising plan.

HDFC Life Insurance Company’s capital raising committee (CRC) will meet on Thursday, July 23, to mull fundraising of up to Rs 600 crore via issuance of debentures. The company in a regulatory filing said that the CRC of the board of directors will meet to approve the said borrowing plan. “We wish to draw your attention to the in-principle approval accorded by the board of directors of HDFC Life Insurance Company Limited for raising of funds through the issuance of NCDs in the nature of subordinated debt instrument up to Rs 600 crore in one or more tranches, on private placement basis,” HDFC Life Insurance Company said in a regulatory filing.

The CRC will consider and approve the proposed issuance of up to 6,000 unsecured, rated, listed, subordinated, redeemable, non-convertible fully paid-up debentures of the aggregate nominal value of up to Rs 600 crore. Each of which will be having a face value of Rs 10 lakh. The private sector life insurer also said it will raise the money in one or more tranches, on a private placement basis which will be subject to receipt of the regulatory and other approvals.

In April this year, the company had received in-principle approval from the board for this fundraising plan. Besides, HDFC Life Insurance Company is scheduled to announce its April-June quarter earnings for the current fiscal year later in the day.

HDFC Life Insurance Company had reported a 14.4 per cent fall in the net profit at Rs 311.71 crore in the January-March quarter of the previous financial year. The company had posted a net profit of Rs 364.01 crore in the corresponding quarter of the financial year 2019. The company had also set up a COVID Reserve Fund with reserves to the tune of Rs 41 crore, covering around 4,500 lives.

HDFC Life Insurance Company shares were trading 0.79 per cent lower at Rs 612.25 apiece as compared to a 1.33 per cent rise in the benchmark S&P BSE Sensex.