Housing Development Finance Corp Ltd’s board on Monday approved issuance of redeemable non-convertible debentures worth Rs 57,000 crore in various tranches.
The board also approved increase in borrowing powers of HDFC to Rs 6.5 lakh crore from Rs 6 lakh crore. HDFC’s outstanding borrowing as on date is Rs 5.7 lakh crore.
“The said decision was taken since the outstanding borrowings of the Corporation as on date is approx. Rs. 5.70 lac crore and the Corporation would need to borrow further for its business purposes till the effective date of merger (with HDFC Bank Ltd),” said HDFC said in a stock exchange filing.
National Company Law Tribunal (NCLT) has recently approved the merger of HDFC and HDFC Bank Ltd.
HDFC had already received the required approvals from the Reserve Bank of India (RBI), the Securities and Exchange Board of India (Sebi), shareholders of HDFC and HDFC Bank, the Pension Fund Regulatory and Development Authority (PFRDA) and the Competition Commission of India (CCI).
The HDFC-HDFC Bank merger, which was announced on April 4, 2022, is dubbed one of the largest mergers in India’s corporate history. The merger, in terms of market capitalisation, is set to create the third largest company in the country, with the amalgamated entity estimated to have a combined asset base of around Rs 18 lakh crore. After the complete deal and merger, existing shareholders of HDFC will own 41 per cent of the HDFC bank.