HDFC Life to Raise Rs 1,000 Crore via NCDs

HDFC Life to Raise Rs 1,000 Crore via NCDs

HDFC Life Insurance Co. plans to raise up to Rs 1,000 crore through non-convertible debentures (NCDs), as per an exchange filing on Wednesday. The board has given in-principle approval for issuing up to 90,000 NCDs with a total value of Rs 900 crore, along with a green shoe option of up to Rs 100 crore. The NCDs will be listed on the National Stock Exchange of India Ltd. This move is the latest business news today.

Strong Q3 Results for HDFC Life

HDFC Life posted a 14% year-on-year rise in net profit for the October-December quarter, matching analyst estimates. The company’s net profit reached Rs 415 crore, in line with the Rs 417 crore consensus estimate. In the same period last year, the net profit was Rs 365 crore. The value of new business also saw growth, exceeding expectations.

HDFC Life Share Price Performance

Following the news, HDFC Life’s share price rose by as much as 2.09% to Rs 639 per share. As of 12:28 p.m., it was trading 0.93% higher at Rs 631. The stock has shown a 12.12% increase over the past year and a 2.34% rise year-to-date. Trading volume was high, at 2.35 times its 30-day average. [[Analysts]] are largely positive on the stock, with most having a ‘buy’ rating. Market analysis suggests a potential upside of 22% based on average price targets.

What are NCDs?

Non-convertible debentures (NCDs) are financial instruments used by companies to raise capital. They are a type of debt instrument, like a loan, where investors lend money to the company in exchange for regular interest payments. Unlike convertible debentures, NCDs cannot be converted into equity shares of the company. They are a relatively safe investment option offering fixed returns.

Why is HDFC Life raising funds?

While the specific reason for raising funds wasn’t stated in the filing, companies often use the money for different purposes. This can include business expansion, investments in new technology, or refinancing existing debt. For HDFC Life, this move could support their growth plans and strengthen their market position in the competitive insurance sector. This is important business news and market analysis for investors today.

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