HDFC on Friday said it will acquire its venture capital subsidiary HVCL by buying out State Bank of India's 19.5 per cent stake in the company.
The Housing Development Finance Corporation (HDFC) holds 80.50 per cent equity share capital of HVCL and the remaining shares are held by State Bank of India (SBI).
"The Corporation on July 29, 2022 entered into a share purchase agreement (SPA) with SBI for acquisition of 97,500 equity shares of HVCL representing 19.50 per cent of its paid-up share equity capital, at a consideration of Rs 10 per share," HDFC said in a regulatory filing.
The acquisition is expected to be completed within 14 days from the date of execution of the SPA or by August 12, 2022.
HVCL is an investment manager to HDFC Property Fund, and it was incorporated in October 2004. Its turnover in 2021-22 stood at Rs 1,01,592.
"Post the proposed acquisition of shares, HVCL would become a wholly-owned subsidiary of the Corporation," HDFC said.
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