AVCJ

Carlyle plans to sell part of HDFC stake - sources

  • Alvina Yuen
  • LinkedIn  
  • Google plus  
  • Save this article  

Carlyle Group is said to be planning to sell 20 million shares in mortgage lender Housing Development Finance Corp. (HDFC). The exit could generate significant returns from the private equity firm's five-year investment in the mortgage company.

Carlyle plans to reduce its stake to close to 4% on 1 February. It currently owns just over 5% of the mortgage lender.

The deal size may amount to INR14 billion ($283 million), three people with knowledge of the matter told Reuters. The shares are priced between INR676.90 and 697.85 apiece. Deutsche Bank is responsible for handling the sale.

Back in 2007, Carlyle purchased 15.25 million new shares in the housing finance company for a stake of 5.6% through a preferential allotment at INR1,730 per share, or INR26 billion ($533 million). In August 2010, the shares were split 1:5.

Carlyle has been keeping its eyes on India's housing market of late. Last August, it committed $26 million to Value & Budget Housing Corporation (VBHC), a constructor and developer of affordable housing in India, through FCG IX, a part of the $1.04 billion Carlyle Asia Growth Partners IV fund.

Last November, HDFC Realty, the private equity arm of India's Housing and Development Finance Corporation, was also said to be seeking potential commitments to its fourth property fund from Government of Singapore Investment Corp. (GIC), Temasek Holdings, Abu Dhabi Investment Authority (ADIA) and Kuwait Investment Authority (KIA).

  • LinkedIn  
  • Google plus  
  • Save this article  

More on South Asia

Latest News

world-hands-globe-climate-esg
Asian GPs slow implementation of ESG policies - survey

Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...

  • GPs