Key Points of HDFC Fund Raise Plan via NCDs:
- HDFC accepted 55 bids for its non-convertible debentures (NCDs) issue aggregating to Rs 25,000 crores at a coupon rate of 7.97 percent per annum.
- HDFC received a total of 92 bids for the NCDs on Electronic Bidding Platform (EBP) amounting to Rs 27,863 crores.
- The NCDs were issued under a Shelf Placement Memorandum on a private placement basis.
- HDFC’s Board of Directors will meet on March 27 to consider issuing unsecured redeemable NCDs in various tranches, aggregating to Rs 57,000 crores.
- HDFC announced a merger with HDFC Bank, creating one of the largest mergers in India’s corporate history with a combined asset base of around Rs 18 lakh crores.
- Existing shareholders of HDFC will own 41 percent of HDFC Bank after the complete deal and merger.
- HDFC reported a rise of 13 percent in its Q3 net profit and net income interest on a year-on-year basis, and the stock is currently trading flat at Rs 1,550 per share and is down nearly 2.5 percent for the week.
Details of HDFC Fund Raise Plan via NCDs:
HDFC Accepts 55 Bids for NCDs Issue Aggregating to Rs 25,000 Crores at 7.97% Coupon Rate
HDFC has accepted 55 bids for its non-convertible debentures (NCDs) issue aggregating to Rs 25,000 crores at a coupon rate of 7.97 percent per annum. The corporation had received 92 bids for the NCDs on Electronic Bidding Platform (EBP) amounting to Rs 27,863 crores. The NCDs were issued under a Shelf Placement Memorandum on a private placement basis. HDFC’s Board of Directors will meet on March 27 to consider issuing unsecured redeemable NCDs in various tranches, aggregating to Rs 57,000 crores.
HDFC Announces Merger with HDFC Bank, Creating Combined Asset Base of Rs 18 Lakh Crores
HDFC has announced a merger with HDFC Bank, creating one of the largest mergers in India’s corporate history. The amalgamated entity is estimated to have a combined asset base of around Rs 18 lakh crores. Existing shareholders of HDFC will own 41 percent of HDFC Bank after the complete deal and merger. The National Company Law Tribunal (NCLT) has reserved the order for approval of the merger, and no objections were filed in the matter. The hearing concluded on February 28.
HDFC Reports 13 Percent Rise in Q3 Net Profit and Net Income Interest
HDFC reported a rise of 13 percent in its Q3 net profit and net income interest on a year-on-year basis. The corporation’s Q3 net interest margin stood at 3.5 percent. In an interview with CNBC-TV18, HDFC’s CEO Keki Mistry said that overall loan growth has been impacted by the reduction in non-individual loans. He expects the cost of funds impact to neutralize in the coming quarters. Mistry also stated that the merger with HDFC Bank will be completed by June/July and that they have asked for forbearance from RBI.
HDFC Stock Trades Flat at Rs 1,550 per Share
As of now, the HDFC stock is trading flat at Rs 1,550 per share and is down nearly 2.5 percent for the week.
About HDFC:
HDFC was amongst the first to receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. HDFC Bank is a publicly held banking company, the bank was incorporated in August 1994 in the name of ‘HDFC Bank Limited’, with its registered office in Mumbai, India. It is engaged in providing a range of banking and financial services including retail banking, wholesale banking and treasury operations. It is promoted by HDFC Ltd. which has 19.32% stake as on September 30, 2020. Currently, HDFC Bank Ltd. (HBL) is the largest private sector bank in India.
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