Mortgage lender HDFC Ltd. announced on Monday that its board has authorised raising money through NCDs in tranches totaling Rs 57,000 crore.
In a regulatory statement, HDFC stated that the board has approved the issuing of unsecured, redeemable, non-convertible debentures under a shelf placement memorandum totaling Rs 57,000 crore in various tranches.
According to the statement, this is in conformity with the permission given by HDFC shareholders at the 45th annual general meeting held on June 30, 2022.
In addition, it noted that “the board has authorised increasing the corporation’s overall borrowing capacities from Rs 6 lakh crore to Rs 6.50 lakh crore, outstanding at any point in time and recommended the same for approval of the corporation’s members by means of postal vote.” The decision was made because HDFC still has to borrow money for commercial purposes up to the merger’s effective date, and its total outstanding debt is now estimated to be over Rs 5.70 lakh crore.
By the third quarter of the next fiscal year, parent company HDFC Ltd is anticipated to combine with subsidiary HDFC Bank.
In what has been called the largest corporate merger in Indian history, HDFC Bank agreed to acquire the largest local mortgage lender in April 2022 in a deal estimated to be worth approximately USD 40 billion, forming a financial services behemoth.
This News is Written by Miss. Ankita , Associate , All India Legal Forum .