GIC, KKR, others back $1.75b investment in India’s HDFC

HDFC chairman Deepak Parekh
HDFC chairman Deepak Parekh. Photo: S.Kumar/Mint

Housing Development Finance Corp Ltd (HDFC) will be raising around Rs11,104 crore from marquee institutional investors like KKR, GIC and Premji Invest among others, the firm stated in a stock exchange notification on Saturday. Separately, the country’s largest mortgage lender will also be raising up to Rs1, 896 crore through qualified institutional placement (QIP).

The housing finance company has roped in investors like KKR, GIC, Ontario Municipal Employees Retirement System (OMERS), Premji Invest and Carmignac for raising funds. HDFC will be issuing 6,43,29, 882 equity shares to these investors represented by multiple entities on a preferential allotment basis at a price of Rs1,726.05 a share raising Rs11,104 crore. The preferential allotment represents 3.87% of HDFC’s enhanced equity share capital post the issue.

The mortgage lender will issue 3,01, 26,589 equity shares to Waverly Pte Ltd, an affiliate of GIC, the sovereign wealth of Singapore. OMERS, the administrator of pension for municipal employees in Canada will be issued 1 crore equity shares.

Another 92,69,719 shares will be issued to Silverview Investments Pte Ltd an affiliate of KKR, a global private equity firm. Carmignac Group of Europe represented by Carmignac Investissement , Cargmignac Portfolio Investissement, Carmignac, Portfolio Investissement Latitude, Carmignac Patrimoine, Carmignac Portfolio Patrimoine will be issued 91,40,000 equity shares and Premji Invest represented through Azim Premji Trust India and PI-Opportunitues Fund—I, India will be issued 57,93,574 equity shares.

“The allotment shall be completed within a period of 15 days from the date of passing of a special resolution by the shareholders through postal ballot,” the notification stated.

On 19 December 2017, the HDFC had announced that it will be raising up Rs13,000 crore through for infusing funds into its subsidiary HDFC Bank Ltd and for growing its affordable housing business.

HDFC will be infusing up to Rs8,500 crore in HDFC Bank in order to maintain its shareholding above 21%.

The mortgage lender is also keen on exploring investment opportunities in stressed real estate assets. HDFC is looking to venture into health insurance along with its general insurance subsidiary HDFC Ergo as well. The HFC will also be raising Rs1,896 crore through QIP.

This story was first published in livemint.com