Citi raises R9,327 cr by selling its HDFC stake
Citi said it would likely record an after-tax gain of about $722 million from the sale of its 9.9% holding in India’s biggest mortgage lender. The sale of the HDFC stake is part of the “ongoing capital planning efforts”, Citi said in a statement.
The bank sold 145.3 million HDFC shares at R657.56 each. The price represents a discount of about 6% to HDFC’s closing price on Thursday, when Citi launched the process to sell its stake. Sources had said the bank had invited bids between R630 and R703.55 per share.
The shares were bought by a large number of global funds as well as some local financial institutions, sources said. Citi was the sole bookrunner, they said.
“We are pleased with the results of our investment in HDFC and will continue to value our long-standing relationship with the company. Citi remains deeply committed to India. We continue to focus on growth opportunities in this very important market,” said Citi India CEO Pramit Jhaveri.
Responding to the development, HDFC vice-chairman and CEO Keki Mistry said: “As far as Citi is concerned, you know that how the capital market in the US is evolving and therefore it (stake sale) was necessary at some point for Citi. It was nothing to do with the performance of the company.” The HDFC scrip was down 3.45% and lost
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