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Housing Development Finance Corporation Limited

One of a kind QIP with a combination of equity, warrants, and NCD

2020

Deal Highlights

  • HDFC is the first specialized mortgage finance company to be set up in India which has now evolved as a financial conglomerate with interests beyond mortgages
  • First capital raise of such kind through QIP with a combination of equity, warrants and NCD
  • The Equity Issue Price was at ~4.3% discount to the floor price
  • The Warrant Exercise price was at ~21.9% premium to the last closing price
  • The issue received overwhelming response from marquee global and domestic investors
  • Key investors include Government of Singapore, Invesco Oppenheimer, T. Rowe Price, Aditya Birla MF, Nippon MF
  • HDFC intends to use the proceeds to maintain sufficient liquidity in this uncertain economic environment, for general corporate purposes and to finance organic and/or inorganic business opportunities

 

SBICAP Value Add

  • SBICAP stepped up the engagement effort through detailed and focussed conversations with a range of marquee investors on all the three instruments
  • SBICAP ensured participation by Stewart Investors as one of the top 5 allocations in the FII Category
  • SBICAP ensured participation by SBI Life which as one of the top 3 in the Life Insurance Category

Issue Details

Equity Issue Size INR 100,000 Mn
Equity Issue Price INR 1,760 per Share
Equity Floor Price INR 1,838.94 per Share
NCD Issue size INR 20,000 Mn
NCD Issue Price INR 742.6
NCD Tenor 36 Months
NCD Coupon Rate 5.40% p.a.
Warrant Issue Size* INR 39,999.60 Mn
Warrant Issue Price INR 180 per Warrant
Warrant Exercise Price INR 2,165 per Warrant
Warrant Exercise Ratio 1 Equity Share for 1 Warrant

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