HDFC surges as investors bet on defensive stocks

India's largest housing finance company, HDFC, a bell weather stock saw sustained buying in the counter, resulting in the stock hitting a new 52-week high.

HDFC, though a financial institution has always been treated as a defensive stock and with defensive stocks flavour of the season, there has been sustained buying in the stock.

The shares of the company was seen higher by 1.39% to Rs 750 on BSE at 1.15 pm IST. It touched intra-day high of Rs 750.

On Monday, HDFC announced successful conversion of of warrants with equity shares
In August 2009, HDFC had issued warrants - along with non-convertible debentures (NCDs) of Rs 10 lakh each - to qualified institutional buyers.

The issue, consisting zero coupon NCDs aggregated to Rs 4,000 crore. Out of this Rs 2,000 crore NCD s were redeemed in August 2011 and the balance Rs 2,000 crore were redeemed on August 24 this year, HDFC said.

Every warrant holder had a right to exchange warrants with one equity share of Rs 2 each of HDFC, on payment of Rs 600 per equity share.

"Pursuant to the exchange of the Warrants, the Corporation issued and allotted 5,47,43,150 equity shares of Rs 2 each and realised an amount of Rs 3,284.59 crore, representing 99.95% of the Warrants issued. As of date, the paid-up equity share capital of HDFC is Rs 307.61 crore and the balance in securities premium account stands at Rs 9,297.14 crore," the release said.

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