homefinance NewsHDFC board approves issuance of redeemable NCDs of Rs 57,000 crore in various tranches

HDFC board approves issuance of redeemable NCDs of Rs 57,000 crore in various tranches

HDFC Ltd will issue redeemable NCDs in accordance with the approval granted by the shareholders of the company at its 45th Annual General Meeting (AGM) held on June 30, 2022.

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By Jitesh Jha  Mar 27, 2023 2:34:35 PM IST (Published)

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HDFC board approves issuance of redeemable NCDs of Rs 57,000 crore in various tranches
HDFC Limited on Monday, March 27, 2023, said that its board had approved the issuance of unsecured redeemable non-convertible debentures (NCDs) worth Rs 57,000 crore. These unsecured NCDs will be issued under Shelf Placement Memorandum in various tranches on a private placement basis.

The NBFC will issue these NCDs in accordance with the approval granted by the shareholders of the company at its 45th Annual General Meeting (AGM) held on June 30, 2022.
Besides, HDFC board has also approved the proposal to increase the corporation’s overall borrowing powers from Rs 6 lakh crore to Rs 6.50 lakh crore. This is outstanding at any point of time and recommended the same for approval of the Members of the Corporation by way of postal ballot.
The said decision was taken since the outstanding borrowings of the corporation as on date is approximately Rs 5.70 lakh crore and the corporation would need to borrow further for its business purposes till the effective date of merger.
Non-convertible debentures (NCDs) are fixed income securities that is listed with stock exchanges, like BSE and NSE in India. These NCDs can be an option for investors with a medium risk tolerance who are seeking for alternatives to bank and corporate FDs.
The shares of HDFC Limited was trading 0.66 percent up at Rs 1,570.80 at 2:14 pm at NSE.

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