HDFC dips on proposed stake sale in insurance arm

HDFC to sell 22.90% stake in its subsidiary HDFC ERGO General Insurance Company

Shares of HDFC were down nearly 1% after the mortgage lender said it plans to sell its 22.90% stake in its subsidiary HDFC ERGO General Insurance Company to its joint-venture partner ERGO International AG, Dusseldorf.

The company has agreed to sell 12,33,57,262 equity shares of Rs 10 each of HDFC ERGO General Insurance Company Ltd at Rs 90.97 per equity share, HDFC said in a release.

Post the said stake sale, HDFC and ERGO will hold 50.73% and 48.74% of the paid-up shares capital of HDFC ERGO, respectively, the release said adding that HDFC ERGO remains a susbidiary of HDFC.

The stock opened at Rs 1,245 and touched a low of Rs 1,226. At 11:10am, over 540,000 shares were traded on both the stock exchanges.