Housing Development Finance Corporation is raising Rs 2500 crore with an option to retain oversubscription of Rs 2500 crore through issue of Secured Redeemable Non-Convertible Debentures of face value of Rs 10 lakh each on private placement basis. The issue opens on 25 September 2020 and the allotment date is 29 September 2020.

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Housing Development Finance Corporation has allotted 17,64,998 equity shares of Rs. 2 each of the Corporation pursuant to exercise of stock options by certain director and employees of the Corporation.

Post the above allotment, the paid-up share capital of the Corporation is Rs. 359,16,11,864 consisting of 179,58,05,932 equity shares of Rs. 2 each.

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The issue size for the secured redeemable non-convertible debentures (NCDs) will be Rs 2,500 crore with an option to retain oversubscription of up to Rs 2,500 crore, HDFC said.

The object of the issue is to augment the long-term resources of the corporation. The proceeds of the present issue would be utilised for financing/ refinancing the housing finance business requirements of the corporation, the mortgage lender added.

The bonds will offer coupon at 6.43% per annum to be payable annually on 29 September every year up to redemption date of 29 September 2025. The bids for the NCDs will open for subscription on 25 September and close on the same day.

Shares of HDFC were down 1.09% at Rs 1649 on BSE. The scrip traded in the range of Rs 1639.20 to Rs 1655 so far during the day.

HDFC's consolidated net profit fell 14.7% to Rs 4,058.53 crore in Q1 June 2020 from Rs 3,539.72 crore in Q1 June 2019. Total income rose 28.7% on a year-on-year basis (Y-o-Y) to Rs 31,560.15 crore during the period under review.

HDFC is engaged in financing by way of loans for the purchase or construction of residential houses, commercial real estate and certain other purposes, in India.

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HDFC has disbursed subsidy to over 2,00,000 homebuyers under the Pradhan Mantri Awas Yojana (PMAY) Credit Linked Subsidy Scheme (CLSS) becoming the first lender to do so. This is the flagship housing scheme of the government.

The Corporation has approved over Rs 47000 crore of home loans under CLSS to homebuyers belonging to the Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Groups (MIG). Subsidy under PMAY amounting to over Rs 4700 crore has been passed on to these 200000 homebuyers, becoming the only financialinstitution in the country to achieve this feat.

The Corporation has been partnering and supporting the Ministry of Housing & UrbanAffairs and the National Housing Bank to work towards the government's goal of'Affordable Housing for All'.

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