Private sector mortgage financier HDFC Ltd has received shareholders’ approval to raise up to Rs 50,000 crore, further it roped in record 19 merchant banks for its mega Rs 14,000 crore fundraising exercise to shore up its balance sheet.
The approval was given at the 26th Annual General Meeting of the bank concluded on Saturday.
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“Approval of shareholders was obtained for issue of Unsecured Perpetual Debt Instruments (part of Additional Tier I capital), Tier II Capital Bonds and Long Term Bonds (financing of infrastructure and affordable housing) on a private placement basis of an amount in aggregate not exceeding Rs 50,000 crores,” the bank said in a regulatory filing on Sunday.
Several banks, both private and public, are looking at raising funds of late.
The 19 merchant banks shortlisted by HDFC Ltd are Axis Capital, BNP Paribas, Bofa Securities, Citi, Credit Suisse, Goldman Sachs, HDFC Bank, HSBC Securities, ICICI Securities, IIFL Capital, Jefferies, JM Financial, JP Morgan, Kotak Mahindra Capital, Motilal Oswal, Morgan Stanley, SBI Capital, and UBS, sources in the know told Moneycontrol.
The venture has set a new record for India Inc as the appointment of this marquee merchant banks- biggest ever taken on board by an Indian corporate for fundraising purposes in the equity capital markets.
The shareholders of HDFC Bank also approved the re-appointment of Malay Patel as an Independent Director, and Kaizad Bharucha as Executive Director and appointment of Renu Karnad as Non-Executive Director of the bank.
