HDFC Ltd. stated it has raised ₹25,000 crore through 10-year Non-Convertible Debentures (NCDs), carrying a coupon price of seven.97%.each year.
This interprets to a ramification of 49 foundation factors over Wednesday’s closing of 10-year authorities safety yield, in response to the mortgage lender.
“The issue received a phenomenal response across all investor categories,” HDFC stated.
Earlier on Tuesday, HDFC launched the concern on the digital e book platform to lift ₹5,000 crore with an choice to retain subscription for added ₹20,000 crore.
“On Thursday, as soon as the bids opened, there was wide participation from several high-quality investors across insurance companies, pension funds, provident funds, banks and mutual funds,” HDFC stated.
“The issue was oversubscribed and received 92 bids amounting to ₹27,863 crore of which the company retained 55 investor bids totalling ₹25,000 crore, it added.
“Demand in the housing sector continues to be strong throughout the country and across all categories. The penetration level of housing in India is one of the lowest in the world. India’s mortgage to GDP ratio is about 11% compared to over 20% in many other emerging markets and over 60% in some of the advanced economies,” stated V. S. Rangan, Executive Director, HDFC Ltd.
“On a sustainable long-term basis, the demand for housing is expected to remain strong, and investor support in long term financing aids allocation of resources towards on-lending to the sector” he added,
