Dewan Housing Finance Corporation to raise Rs.500 crore through QIP

Subsequent to the approval accorded by the Shareholders of the Company under Section 81(1A) and other applicable provisions of the Companies Act, 1956, through voting, by way of Postal Ballot and results declared on January 19, 2012, for Issue of equity shares of Dewan Housing Finance Corporation Ltd and/or other securities in the form of QIPs/ADR's/ GDRs/ FCCBs/ and/or any other securities convertible into equity shares and/or Rights Issue and/or any combination, the duly authorized Committee of the Board of Directors of the Company has, at its meeting held on February 22, 2012 decided to make issue of equity shares of the value of Rs. 10/- each by way of a Qualified Institutions Placement with Qualified Institutional Buyers (QIBs) in terms of Chapter VIII of SEBI (ICDR) Regulations as amended, upto an amount of Rs. 500 Crore (Rupees Five Hundred crore only).

For the issuance of equity shares to QIBs under the said Qualified Institutions Placement the Committee has approved a Preliminary Placement Documents (PPD) in respect of the equity shares proposed to be issued as aforesaid.

The Committee has taken note that the floor price in respect of the issue, based on the pricing formula as prescribed under Regulation 85 of Chapter VIII of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended from time to time ("SEBI ICDR Regulations") is Rs. 255.48 (Rupees Two Hundred Fifty Five and Forty Eight Paise Only per equity share, and the Relevant Date for this purpose, in terms of Regulation 81 of the SEBI ICDR Regulations, is February 22, 2012.

The Dewan Housing Finance Corporation Ltd stock was trading at Rs.258.90, up by Rs.1.40 or 0.54%. The stock hit an intraday high of Rs.261.45 and low of Rs.256.30.

The total traded quantity was 2.73 lakhs compared to 2 week average of 1.55 lakhs.

Source : Equity Bulls

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