Stake sale to Capital Research lifts HDFC

DALAL STREET SPIKES

The share price of HDFC rose two per cent to Rs 623.25 on the Bombay Stock Exchange (BSE) after it told the National Stock Exchange that Capital Research and Management had acquired 4.71 per cent of the voting rights in HDFC.

The fund, registered as a foreign institutional investor in India, has hiked its holding in the company to 6.09 per cent or 1.5 crore shares as on September 8, 2004, from 4.71 per cent or 1.16 crore shares as at end June 2004.

There were rumours since Thursday that HDFC may hive off a part of its holding in HDFC Bank to a US-based bank, which put the stock in the limelight. HDFC, in Monday's trading, witnessed a volume of more than 1.97 lakh shares on the BSE and over 6.95 lakh shares on the NSE.

The stock had hit an intra-day high of Rs 637.50 before closing at Rs 623.25. The stock has been on an upside over the past few days.

From a low of Rs 560.15 on September 3, 2004, the scrip jumped to Monday's close of Rs 623.25.30.