HDFC net up 21%,QIP okayed

HDFC net up 21%,QIP okayed
The Economic Times, July 23, 2009, Page 1

Our Bureau MUMBAI

HDFC on Wednesday unveiled plans to raise Rs 4,000 crore by placing debentures with institutions, as it announced a 21% rise in first quarter profits and spoke about a resurgence in demand for housing.

Shareholders of India’s top mortgage lender approved the qualified institutional placement (QIP) of the non-convertible debentures with warrants, which allow its holders to buy shares in the future, at the firm’s annual meeting.

HDFC chairman Deepak Parekh said the strike price for the warrants would be at a premium to present market levels.

Mr Parekh, who has run HDFC for three decades and is set to become nonexecutive chairman after relinquishing executive duties at the end of 2009, told shareholders there would not be any bonus issues until 2012-13—making it 10 years after the last bonus issue.