Mortgage lender Housing Development Finance Corporation (HDFC) on Friday said the board has given approval for raising foreign institutional investors (FIIs) shareholding limit to 100 percent.
New Delhi: Mortgage lender Housing Development Finance Corporation (HDFC) on Friday said the board has given approval for raising foreign institutional investors (FIIs) shareholding limit to 100 percent.
The move is precursor to upcoming conversion of company's warrants into equity by foreign investors that would increase the overall FII holding in HDFC beyond the current limit of 74 per cent. The warrants are up for conversion on or before August 24, 2012.
The board of directors of the Corporation has passed an enabling resolution approving the increase in the limit on shareholding by FIIs under the Portfolio Investment Scheme, from 74 per cent up to 100 per cent of the paid-up equity share capital, HDFC said in filing to the BSE.
Currently, FII holding in HDFC stands at 66.7 per cent while the promoter holding in company is nil.
It informed "the warrants issued by the HDFC in August 2009 representing about 3.57 per cent of the diluted equity share capital, are due for exchange into equity shares on or before August 24, 2012."
The exchange of such warrants with equity shares may increase the FII shareholding in HDFC, it said.
In February, Citigroup had sold its entire stake of 9.85 per cent held in the HDFC, which was held under the FDI route. These shares were primarily acquired by FIIs.
HDFC reported 16 per cent jump in net profit at Rs 1,326.14 crore for the fourth quarter ended March, 2012.
The company had net profit of Rs 1,141.95 crore in the January-March quarter of the previous fiscal.
The total income rose to Rs 4,884.7 crore in the quarter ended March 31, from Rs 3,774.1 core in the corresponding period a year ago, registering an increase of 29 per cent.
The board proposed a dividend of Rs 11 per share on the face value of Rs 2 each for the financial year 2011-12.
For the entire fiscal ended March 31, 2012, the company reported a 17 percent rise in net profit at Rs 4,122.6 crore, compared to Rs 3,534.9 crore in 2010-11.