Also, HDFC Bank will subscribe 1,03,989 Optionally Redeemable Compulsory Convertible Cumulative Preference Shares (ORCCCPS) of the face value of Rs. 10/- each fully paid up a premium of Rs. 606.60 indirectly through its subsidiary company, HDFC Securities - in Borderless.
The cost of acquisition will be Rs616.60 per CCCPS/ORCCCPS of Borderless.
The transaction is expected to be completed by end of July 2021. Since the acquisition of shareholding is below 10%, regulatory approval is not required.
HDFC Bank will pay nearly Rs50 lakh for the subscription, while HDFC Securities will invest over Rs6.41cr in Borderless.
On completion, HDFC Bank will hold in aggregate 7.76% of the shareholding of Borderless on a fully diluted basis, directly and indirectly, by way of subscription to 8,108 CCCPS of the face value of Rs. 10 each fully paid up by itself and 1,03,989 in ORCCCPS of the face value of Rs. 10/- each fully paid up.
Borderless has been incorporated with the object to carry on the business of a backend tech infrastructure platform that facilitates global fractional investing in US-listed stocks, funds and ETFs. Borderless is in the business of software development for the parent company and distribution of licensed products of the parent company in India.
At around 1.13 PM, HDFC Bank was trading at Rs1487.40 per piece marginally up on Sensex.