Citigroup sells $1.9b stake in Carlyle-backed HDFC

Citi claims to have made a pre-tax gain of $1.1 billion on the sale, alongside a net profit of around $722 million. Its shares are said to have been sold to several global funds and local financial institutions.

Earlier this month, Carlyle sold one-fourth of its stake in HDFC for INR14 billion ($283 million), reducing its shareholding to just over 3.5%. The shares were priced between INR676.90 and 697.85 apiece, and Deutsche Bank handled 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). Citi also invested at this time. In August 2010, the shares were split 1:5.

Citi previously acquired a 9.27% stake in HDFC from its life insurance partner, Standard Life, in May 2006.

Last November, HDFC Realty, the mortgage company's private equity arm, was 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).

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• Topics
• Exits
• Financials
• South Asia
• The Carlyle Group
• India
• Financial Services
• HDFC Private Equity