HDFC, the country’s largest housing finance company, is raising Rs 23,000 crore through a qualified institutional placement (QIP) of equity shares and warrants and non-convertible debentures (NCDs).

The company will raise Rs 14,000 crore through the issue of equity shares and warrants and up to Rs 9,000 crore in secured redeemable non-convertible debentures.

In a regulatory communication to the stock exchanges after market hours, the corporation disclosed that the floor price for the equity share sale is Rs 1,838.94 apiece. This represents a premium of around 3.5 per cent to its closing price of Rs 1,776.90 on the BSE on Wednesday.

HDFC added that its committee of directors will meet on Monday to consider and determine the issue price of the securities that will be issued to the qualified institutional buyers.

The corporation further said that the estimated cut-off yield with respect to the secured redeemable NCDs will be notified according to the circulars issued under the electronic book build mechanism.

Through the QIP, the corporation will mobilise Rs 10,000 crore via equity shares and Rs 4,000 crore from warrants.

Earlier, in its board meeting in June, the directors had approved a proposal to raise Rs 14,000 crore. The mortgage lender had said that these funds were being raised to augment its long-term resources, finance organic or inorganic opportunities that may arise in financial services, including housing finance, or in areas where its subsidiaries operate, maintain sufficient liquidity and for general corporate purposes.

Reports indicate that Kotak Mahindra Capital is the lead merchant banker for HDFC and it will be accompanied by more than a dozen investment bankers that include Morgan Stanley, JP Morgan, Axis Capital and ICICI Securities.

Speaking to shareholders recently at its annual general meeting, HDFC chairman Deepak Parekh had said that the inherent demand for housing loans continues to remain strong and the combination of low interest rates, fiscal incentives and softening of realty prices are a positive for new homebuyers.

He also asked State Governments to offer some relief for home buyers by giving a temporary stamp duty waivers apart for helping migrant workers to return to their workplaces as commercial realty sector has been badly hit due to massive reverse migration of labourers, which is making resumption of projects a challenge.