Home loan major HDFC aims to raise Rs 4,300 crore from the issue of Non-Convertible Debentures (NCDs) for that it has begun institutional placement of debt securities on Monday.

According to investment banking sources, HDFC’s QIP is expected to close tomorrow. The amount to be raised via NCDs would be about Rs 4,000 crore, they added.

The debentures would have zero per cent coupon rate. HDFC will issue two types of NCDs in the market; one will end in August 2010 and the other in August 2012. Each NCD comes with a warrant of Rs 275 each and is priced at Rs 10 lakh each.

The company is offering 1.1 crore warrants at a cost price of Rs 3,00, and each warrant is convertible into one equity share of the company within three years.

“Process of undertaking a qualified institutions placement (QIP) offering of warrants simultaneously with secured redeemable non-convertible debentures to qualified institutional buyers,” said Mr. Deepak Parekh, Chairman HDFC.

While talking to the shareholders at the company’s annual general meeting, Mr. Parekh said that the secured redeemable non-convertible debentures will not exceed Rs 4,000 crore.