HDFC Life To Approve Commercial Terms For Rs 2,000-Crore NCD Issue On Sept. 27

HDFC Life Insurance Co. on Tuesday said its capital raising committee will meet on Sept. 27 to approve the commercial terms of the Rs 2,000 crore NCD issue that was announced two months ago.

"...a meeting of the CRC is scheduled to be held on Friday, September 27, 2024, inter alia, to approve the commercial terms for the proposed issuance of unsecured, rated, listed, redeemable, fully paid-up, non‐cumulative, subordinated, non‐convertible debentures on a private placement basis," the company said in an exchange filing.

On July 15, the private insurer's board approved the proposal to raise up to Rs 2,000 crore in one or more tranches over a period of 12 months.

The board's nod was granted on the same date when the company released its results for the quarter ended June 2024. The net profit increased 15% year-on-year to Rs 479 crore, whereas the net premium income climbed 8.9% to Rs 12,509.6 crore.

On Tuesday, the company's shares settled 0.93% lower at Rs 720.7 apiece on the NSE, compared to a marginal 0.01% rise in the benchmark Nifty 50. Year-to-date, the stock is up 11.4%.

Twenty-eight out of the 33 analysts tracking HDFC Life have a 'buy' rating on the stock, four suggest a 'hold', and only one recommends 'sell', as per Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 5.6%.