Housing Development Finance Corporation (HDFC) will raise Rs 4,000 crore through qualified institutional placement

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(QIP) by diluting 3.5 per cent of its shareholding. HDFC will offload one crore and nine lakh shares for its fund raising exercise.

HDFC also said that it does not expect the listing of its insurance units to take place this fiscal year, but it could happen next year. “Listing in 2010-11 looks logical as of now,” said Keki Mistry, vice-chairman and managing director.

The company's chairman, Deepak Parekh, at the annual general meeting, has sought shareholders’ approval for issuance of warrants with redee-mable non-convertible deb-entures (NCDs) to qualified institutional buyers not exceeding Rs 4,000 crore.

Though the pricing of the QIP is yet to be decided, two investment bankers — Merrill Lynch and Nomura —have approached HDFC to manage the QIP, according to senior HDFC officials.

“Most of the regulatory approvals other than the FIPB approval have come through. We still have to decide on the pricing and other issues,” said Mistry.

A resolution was also passed for the Parekh, the present chairman and managing director of HDFC to continue as non-executive chairman of the bank after he retires from the company in December 2009.

For the quarter the mortgage company has reported a net profit of Rs 564.9 crore, 21 per cent jump from Rs 468 crore reported in the year ago period. While the loan approvals rose by 23 per cent to Rs 12,259 crore in the first quarter, the loan disbursements were up 21 per cent to Rs 8,688 crore.

Total income of the company rose by 23 per cent to Rs 2,849.07 crore, of which Rs 2,792.89 crore is income from operations and Rs 51.31 crore was profit on sale on investment.

The National Housing Bank, the apex body for housing finance companies, has mandated a provisioning requirement of Rs 319 crore for all housing finance companies, but HDFC has kept aside about Rs 621.5 crore for provisioning requirements.