Can Fin Homes Goes Big: Board Greenlights ₹10,000 Crore Debt Drive and ₹1,000 Crore Equity Boost

Can Fin Homes Ltd., India's leading housing finance company, has finalized significant fund-raising proposals after today's Board of Directors meeting. The board has sanctioned proposals to enhance the company's capital base in debt and equity modes, pending shareholders' approval at the upcoming Annual General Meeting.

 

Key Highlights

 

Massive Debt Issuance Scheme:

The Board has recommended shareholders' approval for issue of on-shore and/or off-shore debt securities-including bonds, non-convertible debentures (NCDs), and non-convertible subordinated Tier II debt-for an aggregate size of ₹10,000 crore. The securities can be in domestic or foreign currency, providing the flexibility of accessing the domestic as well as off-shore markets for fund raising.

 

Equity Fundraising Proposal:

The Board has also recommended raising a maximum of ₹1,000 crore by issuance of further shares. The possible equity infusion could be done through Qualified Institutional Placement (QIP), preferential allotment, or rights issue depending on market conditions and shareholder sentiment.

 

Purpose of Fundraising:

The two-pronged fund-raising strategy aims at strengthening Can Fin Homes' capital base, funding business expansion, and addressing regulatory capital requirements. The size and currency flexibility of the instrument will reduce the cost of funds and diversify investor base.

 

Next Steps:

 

Both the proposals will be placed before the company's shareholders in the next Annual General Meeting for approvals, as mandated by the Companies Act, 2013 and SEBI guidelines.

 

Market Impact These deals reflect the intentions of Can Fin Homes to capitalize on growth opportunities in the housing finance segment with a strong balance sheet. The aggressive move of the company to raise capital is likely to enhance its competitive strength and allow further growth in lending. 

 

Source: Business Standard, BlinkX, The Economic Times