Housing finance major HDFC Ltd plans to raise up to Rs 1.25 lakh crore in a year by issuing debt securities through various modes, according to its annual report for 2019-20.
The Housing Development Finance Corporation (HDFC) Limited will convene its annual general meeting (AGM) on July 30 and will seek shareholders approval for the capital raise plan.
The corporation on the AGM day will transact as special business "to consider, and if thought fit, to pass ... a special resolution for issuance of redeemable Non-Convertible Debentures (NCDs) and/or other hybrid instruments on private placement basis", the annual report for fiscal ended March 2020 said.
HDFC said it will seek consent of the members (shareholders) of the Corporation "to issue redeemable NCDs secured or unsecured and/or any other hybrid instruments (not in the nature of equity shares) which may or may not be classified as being Tier II capital under the provisions of the Housing Finance Companies (NHB) Directions, 2010, for cash either at par or premium or at a discount to the face value, for an aggregate amount not exceeding Rs 1,25,000 crore under one or more shelf disclosure document(s)".
The debt securities, it said, may be issued by the Corporation and in one or more series, during a period of one year commencing from the date of this Annual General Meeting, on a private placement basis and on such terms and conditions as the Board may deem fit and appropriate for each series.
The borrowings including by way of issue of NCDs and/or any other hybrid instruments will be within the overall limit of borrowing as approved by the members of the Corporation, from time to time, it added.
As an special business, HDFC said it will also seek shareholders approval for re-appointment of Renu Sud Karnad as the Managing Director of the Corporation. "The re-appointment of Renu Sud Karnad as the Managing Director of the Corporation shall be with effect from January 1, 2020 till September 2, 2022." During the term, Karnad, 67, shall continue to be a member of the Board and shall be liable to retire by rotation, it added.
Further, it said the HDFC Board has also designated Karnad in her capacity as the Managing Director as a key managerial person of the Corporation. "Salary payable to Karnad shall be in the range of Rs 15,00,000 to Rs 27,00,000 per month (which was approved by the Members of the Corporation at the AGM held on July 26, 2017), " HDFC added.
She was re-appointed as the MD of the company for a period of five years with effect from January 1, 2015.
Of the other key business to be transacted in the ensuing AGM, the Corporation will seek approval from shareholders for sale of shares in subsidiary firms HDFC Life Insurance Company and HDFC ERGO General Insurance Company Ltd.
HDFC shares closed at Rs 1,889.30 apiece on BSE, up 2.95 per cent from previous close.
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