HDFC hit a new high of Rs 1,886, up 7% on the BSE in intra-day trade, making its entry into the list of the top-5 most valuable companies by market capitalization (m-cap). The m-cap of mortgage lender crosses Rs 3,000 billion mark in intra-day deal on Monday.
The stock finally settled 6% higher at Rs 1,869.95 on BSE, as compared to 0.73% rise in the S&P BSE Sensex.
With an m-cap of Rs 2,987 billion, HDFC now features at fifth position in the list by replacing fast moving consumer goods (FMCG) company Hindustan Unilever from this prestigious club. HUL have m-cap of Rs 2,959 billion at 04:00 pm, the BSE data shows. HDFC also surpassed, the automobile giant Maruti Suzuki India, which has m-cap of Rs 2,826 billion, data shows.
HDFC Bank, another HDFC Group stock, is at number third rank with an m-cap of Rs 4,907 billion. Reliance Industries at top of the m-cap rank with m-cap of Rs 6,002 billion, followed by information technology giant Tata Consultancy Services (TCS), which has m-cap of Rs 5,259 billion.
Thus far in the calendar year 2018 (CY18), HDFC has outperformed the market by surging 9% as compared to 2.3% rise in Sensex. Maruti Suzuki India (down 3.8%) and Hindustan Unilever (down 0.21%) has underperformed the market by recording negative returns during the period.
HDFC’s board on Saturday, January 13, 2018 approved fund raising worth Rs 130 billion through a combination of a preferential allotment and Qualified Institutions Placement (QIP).
“The key objective of raising capital is to participate in the preferential issue of HDFC Bank up to an amount not exceeding Rs 85 billion. This would enable the Corporation to maintain its current shareholding in HDFC Bank,” HDFC said in a press release.
HDFC said it is also exploring inorganic opportunities in the health insurance sector in conjunction with its subsidiary HDFC ERGO General Insurance Company and is evaluating opportunities in the acquisition and resolution of stressed assets in the real estate sector, it said.
“The Corporation will also need capital to sponsor funds it has set up to invest in the equity and mezzanine debt of affordable housing projects, support capital requirements of its subsidiary companies as and when required and capitalise on organic and inorganic growth opportunities in the affordable housing finance space,” it added.