Citigroup is looking to sell its entire stake in housing finance major HDFC Ltd through a block deal on Friday. The bank currently holds 9.85 per cent in HDFC.
According to agency reports, Citi is looking to raise between $1.86 and $2.07 billion from the sale. It is offering shares at between Rs 630 and Rs 703.55. On Thursday, HDFC shares closed at Rs 700.35, down 0.18 per cent. Mr Deepak Parekh, Chairman, HDFC Ltd, said the stake sale is in preparation for Basel III norms. Under Basel III it is very expensive for banks to hold equity of other companies as they have to make higher provision for equity. Citi had bought HDFC stake in 2005, he added.
Citi's sale comes after private equity firm Carlyle sold a part of its stake in HDFC. Carlyle had 5.22 per cent stake in HDFC, which it pared to less than 4 per cent.