Updated for web and print:
HDFC Ltd on Wednesday announced a 10 per cent stake sale in HDFC Capital Advisors to Abu Dhabi Investment Authority (ADIA) for about ₹184 crore.
“ADIA is also the primary investor in the alternative investment funds managed by HDFC Capital,” HDFC Ltd said in a statement.
Set up in 2016, HDFC Capital advisors is the wholly owned subsidiary of HDFC Ltd and is in the business of managing private equity funds focused on real estate sector in the country.
According to a stock exchange filing by HDFC Ltd, the transaction will be completed by April 30, 2022.
A little over 2.35 lakh shares of HDFC Capital Advisors will be sold at a price of ₹7,841.49 per equity share on a cash basis.
“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,” HDFC said.
HDFC Capital manages an approximately $ 3 billion funding platform which has recently been rated as one of the world’s largest private finance platforms focused on development of affordable housing
“This investment by ADIA will enable HDFC Capital to leverage ADIA’s global expertise and experience to further propel HDFC Capital towards becoming a leading investment platform for global and local investors across multiple strategies and asset classes in the real estate and technology ecosystem,” said Deepak Parekh, Chairman, HDFC Ltd.
Mohamed AlQubaisi, Executive Director of the Real Estate Department, ADIA said, “This agreement builds on our successful investments in the H-CARE funds and underlines our belief in the positive long term outlook for affordable and mid-market housing in India.”
Earlier this month, HDFC Ltd had announced that it would merge with HDFC Bank