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GIC, KKR, Premji Group to invest Rs 11,000 crore in HDFC Ltd

MUMBAI: India’s largest mortgage lender HDFC Ltd has bagged a Rs 11,104 crore investment from marquee investors – like private equity giant GIC Singapore, KKR, Canadian pension plan Ontario Municipal Employees Retirement System, Carmignac Group and Premji Invest. This would lead to a stake dilution of 3.87%.

The preferential allotment will be made at a share price of Rs 1,726.05 per share to 10 investors. The mortgage lender was trading at Rs 1,761.25 at the end of trade on Friday. HDFC board also approved raising Rs 1,896 crore through a Qualified Institutions Placement (QIP) which will be completed within 12 months.

“The Committee of Directors of the Corporation at its meeting held today approved the issue of equity shares up to an aggregate amount not exceeding Rs 13,000 crore through a combination of a Preferential Allotment and Qualified Institutions Placement,subject to shareholders’ approval through postal ballot,” HDFC said in a statement.

HDFC will use the proceeds to invest up to Rs 8,500 crore in HDFC Bank‘s Rs 24,000 crore share sale to retain its stake at 21% in the bank. It will also look at exploring inorganic opportunities in the health insurance sector and evaluate opportunities in the acquisition and resolution of stressed assets in the real estate sector.

“The Corporation will also need capital to sponsor funds it has set up to invest in the equity and mezzanine debt of affordable housing projects, support capital requirements of its subsidiary companies as and when required and capitalise on organic and inorganic growth opportunities in the affordable housing finance space,” the statement said.

The preferential allotment will be made to Waverly Pte. Ltd (an affiliate of GIC), OMERS Administration Corporation, the administrator of the pension plan for Ontario’s municipal employees (OMERS), Canada, Silverview Investments Pte Ltd. (an affiliate of global investment firm KKR), Carmignac Group, France (represented through five entities – Carmignac Investissement, Carmignac Portfolio Investissement,Carmignac Portfolio Investissement Latitude, Carmignac Patrimoine and Carmignac Portfolio Patrimoine); and Premji Invest represented through Azim Premji Trust, India and PI Opportunities Fund – I, India.

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