Citi's HDFC stake on block for Rs 10,200 cr

is looking to exit Housing Development Corp (HDFC) completely. The financial major has invited bids to sell its entire stake, 9.85 per cent, on Friday.

The deal, which could be valued at as much as Rs 10,200 crore, is likely to be the biggest block deal in India since 2005. Last year, Petronas sold its stake in Cairn India for Rs 9,383 crore. This would be Citigroup’s second stake sale in the housing finance behemoth in the past one year.

“Citi has informed us about its intention to sell the stake. Their exit is linked to new capital adequacy rules under Basel III,” Deepak Parekh, chairman of HDFC, told news channels.

Last June, Citi had pruned its stake from 11.4 per cent to the existing 9.85 per cent. The firm had said the reduction in stake was in line with Basel III norms, which required banks to have tier-I capital at seven per cent of the total risk-weighted assets. Citi bought the stake in two big tranches in 2005 and 2007, industry sources said.

Besides Citi, Carlyle sold a quarter of its stake in HDFC on February 1, raising about Rs 1,350 crore and nearly doubling the money from its 2007 investment in the lender.
 

TOP 5 BULK DEALS SINCE 2005
If Citigroup’s 9.85 per cent stake in HDFC fetches Rs 10,200 crore, it would
be the biggest bulk deal in the country since 2005
Date Stake sold in Stake seller  Price per share Amount ( Rs cr)
Apr 19, ‘11 CAIRN INDIA PETRONAS INTERNATIONAL 331.08 9,383.85
Jan 11, ‘10 RELIANCE IND. VISHNUBHAI B HARIBHAKTI* 1,051.73 3,470.71
Mar 15, ‘05 BHARTI TELE BRENTWOOD INVESTMENT 218 2,441.60
Jul 7, ‘08 SPICE TELE MCORPGLOBAL COMMUNICATIONS 77.3 2,175.91
Mar 9, ‘10 Tata Motors DAIMLER AG (FDI) 751.67 1,924.01
*ON BEHALF OF PETROLEUM TRUST
Data compiled by BS Research Bureau
Source: Exchanges

Citigroup Strategic Holdings Mauritius and Citigroup Holdings Mauritius, which collectively own 9.85 per cent stake in India’s largest mortgage lender, are offering 145.3 million shares at Rs 630-703.55 apiece, according to a term sheet reviewed by Business Standard. The discount will be 0-10.45 per cent to Thursday’s closing price of Rs 700.35.

The stake sale is likely to happen through multiple bulk deals on Friday. When contacted, an HDFC spokesperson declined to comment. An email query sent to Citigroup’s spokesperson in India remained unanswered.

HDFC shares have risen 7.6 per cent in 2012, compared with a 17 per cent increase in the benchmark Sensex. After losing a quarter of its value last calendar year, the Sensex has gained 17 per cent this year so far, giving investors an opportunity to exit.Warburg Pincus sold about 17.5 million shares in Kotak Mahindra Bank this month through open market deals to raise about $170 million.

image
Business Standard
177 22
Business Standard

Citi's HDFC stake on block for Rs 10,200 cr

BS Reporter  |  Mumbai 



is looking to exit Housing Development Corp (HDFC) completely. The financial major has invited bids to sell its entire stake, 9.85 per cent, on Friday.

The deal, which could be valued at as much as Rs 10,200 crore, is likely to be the biggest block deal in India since 2005. Last year, Petronas sold its stake in Cairn India for Rs 9,383 crore. This would be Citigroup’s second stake sale in the housing finance behemoth in the past one year.

“Citi has informed us about its intention to sell the stake. Their exit is linked to new capital adequacy rules under Basel III,” Deepak Parekh, chairman of HDFC, told news channels.

Last June, Citi had pruned its stake from 11.4 per cent to the existing 9.85 per cent. The firm had said the reduction in stake was in line with Basel III norms, which required banks to have tier-I capital at seven per cent of the total risk-weighted assets. Citi bought the stake in two big tranches in 2005 and 2007, industry sources said.

Besides Citi, Carlyle sold a quarter of its stake in HDFC on February 1, raising about Rs 1,350 crore and nearly doubling the money from its 2007 investment in the lender.
 

TOP 5 BULK DEALS SINCE 2005
If Citigroup’s 9.85 per cent stake in HDFC fetches Rs 10,200 crore, it would

be the biggest bulk deal in the country since 2005
Date Stake sold in Stake seller  Price per share Amount ( Rs cr)
Apr 19, ‘11 CAIRN INDIA PETRONAS INTERNATIONAL 331.08 9,383.85
Jan 11, ‘10 RELIANCE IND. VISHNUBHAI B HARIBHAKTI* 1,051.73 3,470.71
Mar 15, ‘05 BHARTI TELE BRENTWOOD INVESTMENT 218 2,441.60
Jul 7, ‘08 SPICE TELE MCORPGLOBAL COMMUNICATIONS 77.3 2,175.91
Mar 9, ‘10 Tata Motors DAIMLER AG (FDI) 751.67 1,924.01
*ON BEHALF OF PETROLEUM TRUST
Data compiled by BS Research Bureau
Source: Exchanges

Citigroup Strategic Holdings Mauritius and Citigroup Holdings Mauritius, which collectively own 9.85 per cent stake in India’s largest mortgage lender, are offering 145.3 million shares at Rs 630-703.55 apiece, according to a term sheet reviewed by Business Standard. The discount will be 0-10.45 per cent to Thursday’s closing price of Rs 700.35.

The stake sale is likely to happen through multiple bulk deals on Friday. When contacted, an HDFC spokesperson declined to comment. An email query sent to Citigroup’s spokesperson in India remained unanswered.

HDFC shares have risen 7.6 per cent in 2012, compared with a 17 per cent increase in the benchmark Sensex. After losing a quarter of its value last calendar year, the Sensex has gained 17 per cent this year so far, giving investors an opportunity to exit.Warburg Pincus sold about 17.5 million shares in Kotak Mahindra Bank this month through open market deals to raise about $170 million.

RECOMMENDED FOR YOU

Citi's HDFC stake on block for Rs 10,200 cr

Citigroup is looking to exit Housing Development Finance Corp (HDFC) completely. The financial major has invited bids to sell its entire stake, 9.85 per cent, on Friday.

is looking to exit Housing Development Corp (HDFC) completely. The financial major has invited bids to sell its entire stake, 9.85 per cent, on Friday.

The deal, which could be valued at as much as Rs 10,200 crore, is likely to be the biggest block deal in India since 2005. Last year, Petronas sold its stake in Cairn India for Rs 9,383 crore. This would be Citigroup’s second stake sale in the housing finance behemoth in the past one year.

“Citi has informed us about its intention to sell the stake. Their exit is linked to new capital adequacy rules under Basel III,” Deepak Parekh, chairman of HDFC, told news channels.

Last June, Citi had pruned its stake from 11.4 per cent to the existing 9.85 per cent. The firm had said the reduction in stake was in line with Basel III norms, which required banks to have tier-I capital at seven per cent of the total risk-weighted assets. Citi bought the stake in two big tranches in 2005 and 2007, industry sources said.

Besides Citi, Carlyle sold a quarter of its stake in HDFC on February 1, raising about Rs 1,350 crore and nearly doubling the money from its 2007 investment in the lender.
 

TOP 5 BULK DEALS SINCE 2005
If Citigroup’s 9.85 per cent stake in HDFC fetches Rs 10,200 crore, it would
be the biggest bulk deal in the country since 2005
Date Stake sold in Stake seller  Price per share Amount ( Rs cr)
Apr 19, ‘11 CAIRN INDIA PETRONAS INTERNATIONAL 331.08 9,383.85
Jan 11, ‘10 RELIANCE IND. VISHNUBHAI B HARIBHAKTI* 1,051.73 3,470.71
Mar 15, ‘05 BHARTI TELE BRENTWOOD INVESTMENT 218 2,441.60
Jul 7, ‘08 SPICE TELE MCORPGLOBAL COMMUNICATIONS 77.3 2,175.91
Mar 9, ‘10 Tata Motors DAIMLER AG (FDI) 751.67 1,924.01
*ON BEHALF OF PETROLEUM TRUST
Data compiled by BS Research Bureau
Source: Exchanges

Citigroup Strategic Holdings Mauritius and Citigroup Holdings Mauritius, which collectively own 9.85 per cent stake in India’s largest mortgage lender, are offering 145.3 million shares at Rs 630-703.55 apiece, according to a term sheet reviewed by Business Standard. The discount will be 0-10.45 per cent to Thursday’s closing price of Rs 700.35.

The stake sale is likely to happen through multiple bulk deals on Friday. When contacted, an HDFC spokesperson declined to comment. An email query sent to Citigroup’s spokesperson in India remained unanswered.

HDFC shares have risen 7.6 per cent in 2012, compared with a 17 per cent increase in the benchmark Sensex. After losing a quarter of its value last calendar year, the Sensex has gained 17 per cent this year so far, giving investors an opportunity to exit.Warburg Pincus sold about 17.5 million shares in Kotak Mahindra Bank this month through open market deals to raise about $170 million.

image
Business Standard
177 22
Widgets Magazine

More News

Widgets Magazine
Widgets Magazine
Advertisement

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard