MUMBAI: Housing Development Finance Corporation Ltd (HDFC) is on a tear, with the company’s shares crossing Rs 3 lakh crore market capitalisation mark for the first time.
On Monday, the HDFC scrip soared over 6.7 per cent on the news of raising up to Rs 13,000 crore through qualified institutional placement (QIP) and preference issue.
The upward swing is in line with benchmark Sensex and Nifty, which hit record closing highs for the third straight session.
There are more than six companies that crossed the Rs 3 lakh crore market cap namely Reliance Industries Ltd, Tata Consultancy Services Ltd, HDFC Bank, ITC, Maruti Suzuki India and Oil & Natural Gas Corporation Ltd.
Currently, RIL is the country’s most valued company with a market capitalisation of Rs 6 lakh crore, followed by TCS and HDFC Bank at Rs 5.28 lakh crore and Rs 4.92 lakh crore, respectively. The combined might of these top three firms is lower than the current market cap of Apple at $900 billion.
Meanwhile, HDFC touched a fresh record high of Rs 1,878 on the BSE, up 6.70 per cent from its previous close with a market cap of Rs 3.01 lakh crore. The surge in HDFC’s shares was on the back of the private lender’s decision last week, where its committee of directors approved selling 64.3 million shares at Rs 1,726.05 per share to the investors, according to a disclosure to the bourses. The mortgage lender raised funds, roping in marquee investors like KKR, GIC, Ontario Municipal Employees Retirement System, Premji Invest and Carmignac.
Separately, HDFC will also sell shares to institutional investors through QIP to raise up to Rs 1,896 crore, it said. HDFC’s fund raising is mainly aimed at investing in a preferential share issue by HDFC Bank, which will help the mortgage lender maintain its about 21 per cent stake in the bank.