HDFC will also be acquiring the receivables pertaining to the loan portfolio of Global Housing Finance Corporation and Weizmann Homes Ltd.

HT has now become a 100 per cent subsidiary of HDFC. Gruh was initially promoted by International Finance Corporation (Washington), His Highness Aga Khan, HDFC and Gujarat government. HDFC which had a stake of a 28 per cent stake in the company will be increasing its stake to 54 per cent, making it a subsidiary of the company.

Addressing a press conference on Tuesday HDFC chairman Deepak Parekh said: "HT has a major presence in the eastern market where HDFC's presence is comparatively low. HT has 21 branches and 98 per cent of its business from individual home loans."

"The total consideration paid for HT was Rs 50.01 crore at Rs 33 per share. The book value of the company is Rs 16. Internationally the valuations in housing finance companies vary from 1.5 to 3 times the book value of the company. In the course of the next three-four months, HT will be amalgamated with HDFC," Parekh added.

The non-performing assets of HT was at one per cent and the capital adequacy ratio was at 30 per cent.

Gruh was acquired for a consideration of Rs 9.99 crore, at the rate of Rs 14.50 per share.The book value of the company is Rs 18 while the discounted book value is Rs 10. With these sell offs GACL will be getting out of retail housing loan sector and will focus on its core business cement. With these deals GACL will have a cash flow of Rs 60 crore and capital gains of Rs 33.30 crore. Gruh has 24 branches located in Maharashtra and Gujarat and around 92 per cent of its business is from individual home loans. "The company had sanctioned some loans four years ago to developers and builders.

But with the downturn in the industry the company also was hit. Gruh has Rs 20 crore NPAs in its bulk loans where as for individual loans the NPAs were less than half per cent," Parekh said. HDFC will also acquire the receivables pertaining to the loan portfolio of Global Housing Finance Corporation aggregating to Rs 42.55 crore. The first phase is for an amount of Rs 22.60 crore and the remaining Rs 19.95 crore will be completed subject to regulatory approvals.

HDFC has also signed an agreement with Weizmann Homes to acquire part of its receivables of Rs 15 crore. Global and Weizmann will continue to source housing loans under their own names and HDFC will from time-to-time, consider acquiring the receivables of such fresh loans.

On the acquisitions Parekh said, "These deals have been stuck to consolidate our position in the market. The market is becoming increasingly competitive and size brings with it economies of scale which will ultimately benefit the customers. HDFC will be adding more than 14,00 customers to its existing data base with these deals."

Praekh added,"The acquisitions will result in better utilisation of delivery channels and will help to increase its distribution strength to deliver services and products to a large customer base more efficiently and cost effectively. According to HDFC executive director Renu S Karnad " Some of the offices of HT and HDFC will overlap each other. However we will continue with most of the offices."

Hometrust's FD under rating watch
Following the announcement of take over of HT by HDFC, credit rating agency CRISIL has placed the FA- (FA minus) rating assigned to the fixed deposit programme of HT under "rating watch with positive implications."FA- rating indicates that the degree of safety regarding timely payments of principal and interest is satisfactory.