Housing Development Finance Corporation (HDFC) — one of India’s largest mortgage lenders — raised a sum of ₹11,104 crores (approx. $1.75 billion) from ten marquee investors.
The announcement comes less than a month after HDFC said it would raise ₹ 13,000 crores ($2 billion) to maintain its 21% stake in HDFC Bank, by investing in other subsidiaries, exploring opportunities in the health insurance sector and looking for stressed assets in the real estate sector.
This particular investment includes selling preferential shares to investors, including: Singapore sovereign wealth fund GIC and private equity firm KKR & Co., and Waverly Pte. Ltd., an affiliate of GIC Singapore and OMERS Administration Corporation, the administrator of the pension plan for Ontario’s municipal employees (OMERS), Canada.
HDFC will sell 64.3 million shares at ₹1,726.05 apiece to the investors.
In a statement issued by the HDFC, the Hindu reports: “The key objective of raising capital is to participate in the preferential issue of HDFC Bank up to an amount not exceeding ₹8,500 crore. This would enable the Corporation to maintain its current shareholding in HDFC Bank.”
The Hindu reported that in the statement, “HDFC said it would also need capital to sponsor funds it has set up to invest in the equity and mezzanine debt of affordable housing projects, support capital requirements of its subsidiary companies as and when required and ‘capitalise on organic and inorganic growth opportunities in the affordable housing finance space’.”