HDFC has decided to raise Rs 4301 crore through private placement of warrants and non-convertible debentures to qualified institutional buyers.

The price of each warrant has been fixed at Rs 275 and will be targeted at domestic investors, including banks, insurance and mutual funds.

According to a company official, out of proposed amount, Rs 2,000 crore represents zero coupon Non-convertible Debentures (NCDs) with a two-year term and an annualized rate of 7.15 per cent.

However, another Rs 2,000 crore will also be zero coupon NCDs with a three-year debt and an annualized rate 7.85 per cent, or a monthly compounded interest rate of 7.58 per cent.

Shares of HDFC closed at Rs 2432, up 1.49 per cent from the previous close of Rs 2396 on the BSE, on Friday.