HDFC To Sell 10% Stake In HDFC Capital

HDFC to sell 10% stake in HDFC Capital, inks Rs 184 crore deal with ADIA.

HDFC Ltd on Wednesday announced the sale of a 10 percent stake in its private equity arm HDFC Capital Advisors to a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA).

The deal is worth around Rs 184 crore. ADIA is also the primary investor in the USD 3 billion alternative investment fund managed by HDFC Capital.

HDFC Capital, established in 2016, is the investment manager of HDFC Capital Affordable Real Estate Fund 1, 2, and 3, HDFC Ltd said in a statement.

Simultaneously, it is in line with the government’s goal of increasing the housing supply. It supports the Pradhan Mantri Awas Yojana- ‘Housing for All’ initiative.

The funds managed by HDFC Capital provide long-term and flexible funding for the life cycle of affordable and medium-income housing projects, including early-stage funding, the statement said.

In addition, the funds will invest in technology companies such as fin-tech and clean-tech engaged in the affordable housing ecosystem.

Earlier this month, HDFC announced the merger of the company with the country’s largest private lender HDFC Bank.

According to stock exchange filings, once the deal takes effect, HDFC Bank will be 100 percent owned by public shareholders and existing shareholders of HDFC will hold 41 percent of the bank.

HDFC to sell 10% stake: HDFC Chairman Deepak Parekh said that ADIA’s investment will enable HDFC Capital to leverage ADIA’s global expertise and experience.

This will propel HDFC Capital to become a leading investment platform for global and local investors across multiple strategies and asset classes in the real estate and technology ecosystem.

Mohamed Alqubaisi, Executive Director, Department of Real Estate, ADIA.

He said that HDFC Capital is a leading provider of affordable housing project finance with an established track record of supporting the growth of new residential stock across the country.

According to the statement, HDFC Capital aims to finance the development of one million affordable homes in India through a combination of innovative financing, partnerships, and technology with a focus on sustainability.