PremiumNBFC giant, HDFC is set to raise approximately ₹5,500 crore by issuing secured redeemable non-convertible debentures via private placement. The NCDs have a rating of 'AAA' by major agencies like CRISIL and ICRA. The issue is part of HDFC's shelf placement memorandum 'AA' series aggregating a whopping ₹75,000 crore.
As per the regulatory filing, the base issue size is around ₹4,000 crore, while can be retained for an oversubscription of up to ₹1,500 crore --- taking the total size to be around ₹5,500 crore.
The NCDs have a coupon rate of 7.70% per annum. The coupon rate will be paid on November 18 every year up to the redemption date. Notably, the coupon rate is fixed.
However, HDFC stated that in case of default in payment of the coupon and/ or redemption of the principal amount of the Debentures on the respective due dates, additional interest of at least 2% per annum over and above the coupon rate of 7.7% will be payable by the company for the defaulting period until the defaulted amount together with the delay penalty is paid.
HDFC announced that the ₹5,500 crore NCDs will be open for bidding on November 17. The bidding will close on the same day as well.
The tenure of the NCDs is 3 years and will mature on November 18, 2025. The issue and redemption price is ₹10 lakh each.
HDFC said, the object of the issue is to augment the long-term resources of the corporation. The proceeds of the present the issue would be utilized for financing/refinancing the housing finance business requirements of the corporation.
The debentures will be listed on BSE and NSE. HDFC stated that the debentures issued in terms of this Shelf Placement Memorandum will be listed within 4 days from the issue closing date of each series.
The shelf placement memorandum 'AA' series worth ₹75,000 crore was approved by HDFC's board of directors on November 1.
On BSE, currently, HDFC shares are trading higher by 0.54% to ₹2676 apiece at around 3.12 pm. The shares were near the day's high of ₹2677.50 apiece. HDFC is the largest NBFC in terms of market share. Its market valuation is over ₹4.86 lakh crore.