HDFC Ltd today announced sale of its subsidiaries HDFC Realty and HDFC Developers to Quikr India.
HDFC Ltd today announced sale of its subsidiaries HDFC Realty and HDFC Developers to Quikr India in an all stock deal that will give the financial services conglomerate a stake in the online classified platform now valued at over Rs 10,000 crore. According to sources, HDFC will get over 3 per cent stake in Quikr India in lieu of sale of its stake in the two subsidiaries for Rs 357 crore. The deal is the latest in online real estate brokerage space, where Quikr itself has previously acquired four companies so far, including Commonfloor. Earlier this year, News Corp-backed realty portal PropTiger.com acquired Housing.com.
In a BSE filing, HDFC said that it has “approved the sale of 100 per cent of the equity share capital of HDFC Developers Ltd and HDFC Realty Ltd, its wholly-owned subsidiary companies to Quikr India Pvt Ltd at a total consideration of Rs 101.99 crore and Rs 254.98 crore, respectively”.
The deal, which values Quikr India at Rs 10,385 crore, is expected to be concluded in this fiscal.
HDFC Developers contributed Rs 6.23 crore in 2016-17 to the HDFC’s turnover, representing 0.01 per cent of the total consolidated turnover of the corporation. HDFC Realty contributed Rs 35.25 crore in last fiscal to HDFC’s turnover, representing 0.06 per cent of the consolidated turnover.
“HDFC has also acquired an equity stake in Quikr India Pvt Ltd (Quikr India),” HDFC said in a statement.
HDFC Realty is offline brokerage business with a presence across residential and commercial properties as well as consulting and valuation services. It has a 300 member in- house sales team and 7,000 strong nationwide broker network.
HDFC Developers runs the HDFC RED platform. RED is an online real estate classifieds platform with 7,000 project listings on its platform. It generates traffic of over 80,000 unique visitors per month.
“Post integration of HDFC Realty and RED, Quikr will become India’s leading online-to-offline real estate platform, and offer consumers end-to-end home buying services,” HDFC said.
With 30 million monthly users, Quikr is India’s largest classifieds platform that runs multiple vertical businesses across real estate, automobiles, jobs, services and goods.
Its real estate vertical ‘Quikr Homes’ generates 3.5 million monthly unique visitors.
Commenting on the development, HDFC’s MD Renu Sud Karnad said, “We are happy to associate with Quikr. The future of real estate is ‘digital’ and Quikr has built a robust technology platform for consumers with products for developers and brokers who stand to benefit in the post-RERA regime.”
“We hope to derive value from Quikr’s diversified customer base, while offering our strengths in the real estate sector,” she said.
Pranay Chulet, Founder and CEO, Quikr, said, “The partnership with HDFC has come at the most opportune time when the Indian real estate industry is undergoing fundamental transformation, creating great opportunities for those who want to bring new, innovative solutions for all industry stakeholders.”
Kotak Investment Banking was the advisor to HDFC for the deal, while Quikr was advised by Avendus.