HDFC shares up on stake sale in HDFC Capital to Abu Dhabi Investment Authority

Shares of HDFC Ltd were trading higher in early trade today after the housing finance major announced that it has entered into binding agreements to sell 10 per cent of share capital of HDFC Capital Advisors Limited (HCAL), to a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for about Rs 184 crore.

"We wish to inform you that the Corporation has today entered into binding agreements for sale of 2,35,019 equity shares of ~ 10 each of HDFC Capital Advisors Limited (HCAL), its wholly owned subsidiary, representing 10% of the fully diluted paid-up share capital of HCAL. The said shares are proposed to be sold by the Corporation to a wholly owned subsidiary of Abu Dhabi Investment Authority, the principal investor of all the alternate investment funds currently managed by HCAL," the company said.

At 11:00 hours, the shares were trading 1.79 per cent higher at Rs 2,177. Market cap of the company rose to Rs 3,94,695.47 crore. The stock has gained after 3 days of consecutive fall.

Post the said sale, HCAL would cease to be a wholly owned subsidiary of the Corporation, however it would continue as a subsidiary of the Corporation.

Earlier this month, Housing finance company HDFC Limited announced merger with private sector bank, HDFC Bank. As part of the merger between HDFC and HDFC Bank, 42 shares of HDFC Bank would be given for every 25 shares of HDFC. Post the amalgamation, HDFC Bank will be 100 per cent owned by public shareholders and existing shareholders of HDFC will own a 41 per cent stake in the bank.

HDFC Ltd also divested a little over 3 per cent stake in Bandhan Bank, garnering Rs 1,522 crore, through an open market transaction.

According to bulk deal data available with the BSE, Housing Development Finance Corporation (HDFC) sold a total of 4,96,32,349 shares, amounting to 3.08 per cent stake, of Bandhan Bank.

The shares were offloaded at an average price of Rs 306.61 apiece, valuing the transaction at Rs 1,521.77 crore.

HDFC, a public shareholder in Bandhan Bank, held 9.89 per cent stake in the private lender at the end of the December quarter, shareholding data with the exchange showed.