Capital Research buys 1.38% more in HDFC

US-based Capital Research and Management Company has acquired an additional 1.38 per cent stake in Housing Development Finance Corporation Ltd (HDFC) in September, taking its total holding to 6.09 per cent as on September 8.

This makes Capital Research and Management Company the second largest foreign institutional investor (FII) in HDFC after SLAC Mauritius Holding, which holds 9.66 per cent as on August 31.

Capital Research and Management Company bought 1,16,07,500 shares, constituting 4.71 per cent of the voting rights of HDFC, from the open market during the period May to September, the housing finance major informed the National Stock Exchange (NSE) today.

As per the latest available shareholding pattern as on August 31, Capital Research and Management Company held 4.71 per cent stake, which has since risen to 6.09 per cent.

The latest acquisition is understood to have taken place on September 8, wherein Capital Research and Management Company's shareholding rose to 1,50,25,318 shares.

Speaking to Business Standard from Hong Kong, Keki Mistry, managing director, HDFC, said: "These are just routine FII purchases." The acquisition is through transfer between two FIIs, leaving the FII holding in HDFC at 61.64 per cent.

HDFC raised the cap on FII holding to 74 per cent from the earlier 49 per cent following a lot of interest by FIIs in the company. The top five FIIs in the housing finance major include SLAC Mauritius Holding (9.66 per cent), Capital Research and Management Company (6.09 per cent), Standard Life (4.74 per cent), Emerging Markets Growth fund (3.39 per cent) and Emerging Markets Growth Fund Inc (2.24 per cent).