HDFC AMC promoters HDFC, Standard Life approval part stake sale
Housing Development Finance Corp Ltd (HDFC) board has approved part of its stake in subsidiary HDFC Asset Management Co Ltd through an offer for sale in an initial public offering, it said in a release today.
The board of HDFC Asset Management Co approved initiating the process of the proposed initial public offering.
Standard Life Investments Ltd also gave its in-principle approval to sell part of its stake via the public offer.
The size of the offer, price, and other details will be determined in due course, the release added.
Post-dilution of the stake in the asset management company, HDFC will hold at least 50.01% stake while Standard Life will hold 24.99%.
Currently, HDFC owns 59.99% in HDFC Asset Management Co, with Standard Life holding 39.99% and other shareholders holding 0.02%.
Housing Development Finance Corporation Ltd ended at Rs1677.85, down by Rs25.05 or 1.47% from its previous closing of Rs1702.9 on the BSE. The scrip opened at Rs1704 and touched a high and low of Rs1704 and Rs1673 respectively.
HDFC is India’s 2nd largest mortgage lender with a market share of ~20%. Its outstanding loans stood at ~Rs3.25 lakh cr as on FY17. Its ~73% of its loan book comprises retail loans and the rest comprises commercial real estate loans. It sources of funding includes bank loans (~12% of total borrowing), bonds & commercial paper (~56%) and deposits (~32%). HDFC Ltd holds 21.2% & 61.6% stake in HDFC bank & HDFC Life respectively.
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Via:: Stock – India Infoline