HDFC to sell10% stake in HDFC Capital Advisors to Abu Dhabi Investment Authority; stock up ~2%

20 Apr 2022 , 01:01 PM

HDFC Limited has entered into binding agreements for the sale of 2,35,019 equity shares of Rs10 each of HDFC Capital Advisors Limited (HCAL), its wholly-owned subsidiary, representing 10% of the fully paid-up share capital of HCAL.

The said shares are proposed to be transferred to a wholly-owned subsidiary of the Abu Dhabi Investment Authority. ADIA is the principal investor of all the alternate investment funds currently managed by HCAL.

The sales consideration for this transaction is approximately Rs184 crore.

HCAL was incorporated as a public limited company and is acting as an investment manager for certain Category II Alternative Investment Funds registered with the Securities and Exchange Board of India. HDFC Capital manages an approximately US$3 billion funding platform which has recently been rated as one of the world’s largest private finance platforms focused on the development of affordable housing.

The funds managed by HDFC Capital provide long-term, flexible funding throughout the lifecycle of affordable and mid-income housing projects including early-stage funding. In addition, the funds will also make investments in technology companies (construction technology, fin-tech, clean-tech, etc.) engaged in the affordable housing ecosystem.

HDFC Ltd. is currently trading at Rs2,176.10 up by Rs37.45 or 1.75% from its previous closing of Rs2,138.65 on the BSE. The scrip has touched intraday high and low of Rs2,183.70 and Rs2,145 respectively.