The Capital Raising Committee (CRC) of the Board of Directors of the HDFC Life Insurance Company is scheduled to meet on Thursday to consider raising funds up to Rs 600 crore through issuance of debentures.
The company, in a regulatory filing said, “…a meeting of the Capital Raising Committee (“CRC”) of the Board of Directors of the Company is scheduled to be held on Thursday, July 23, 2020, inter-alia, to transact the“ said borrowing plan.
“To approve the commercial terms of proposed issuance of up to 6,000 (Six Thousand) Unsecured, Rated, Listed, Subordinated, Redeemable, Non-Convertible Fully Paid-up Debentures each having a face value of Rs.10,00,000/- (Rupees Ten Lakh only) of the aggregate nominal value of up to Rs.600,00,00,000/- (Rupees Six Hundred Crore only) (hereinafter referred to as the “Debentures”) for cash, at par, in dematerialised form on private placement basis, and in terms of the IRDAI (Other Forms of Capital) Regulations, 2015,” the filing said.
The private sector life insurer said it will raise the money in one or more tranches, on private placement basis, subject to regulatory and other approvals.
Earlier in April, the company had received had got in-principle approval from the board in April this year for this fundraising plan.
HDFC Life Insurance Company is scheduled to declare its earnings for first quarter of this fiscal year 2020-21 later in the day.
Shares of the company were trading at Rs 615.45 apiece on BSE, down 0.28 per cent from its previous close.