India-based Housing Development Finance Corp. Ltd. obtained board approval to raise its authorized share capital to 3.7 billion Indian rupees from 3.5 billion rupees.
This comprises 1.85 billion equity shares of 2 rupees apiece, the company said in a Dec. 19 release.
It also plans to raise up to 130 billion rupees through the issuance of equity shares, compulsorily convertible debentures or warrants through preferential or qualified institutional placement. The company added it needed capital for, among other things, potential opportunities in health insurance and stressed real estate assets, and investing in equity and mezzanine debt of affordable housing projects.
Further, the company will invest up to 85 billion rupees in unit HDFC Bank Ltd. by subscribing preferentially to securities offered by the lender.
These exercises are all subject to regulatory and shareholder approvals.
As of Dec. 19, US$1 was equivalent to 64.05 Indian rupees.