HDFC stock price falls over 4% amid plan to raise Rs 4,000 crore via bond issue

HDFC stock price fell over 4% on Friday amid plan to raise up to Rs 4,000 crore by issuing bonds on private placement basis.

HDFC shares opened with a loss of 3.92% and later touched an intraday low of Rs 1,711, falling 4.26% on BSE. The stock has fallen 7.87% in one week and 25% since the beginning of the year.

HDFC share price is trading higher than its 20 and 50-day moving averages but lower than 5, 100 and 200-day moving averages.

As per the regulatory filing, the issue size is of Rs 2,100 crore with an option to retain over-subscription up to Rs 1,900 crore.

HDFC said that the issue size of the secured redeemable non-convertible debentures will open and close on June 15, 2020.

"The object of the issue is to augment the long-term resources of the corporation. The proceeds of the present issue would be utilized for financing/refinancing the housing finance business requirement of the Corporation," Housing Development Finance Corporation Limited said.

The proceeds would be utilised for meeting the object of the issue, it added later.

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