India’s largest mortgage lender HDFC on Thursday said it will sell its subsidiaries HDFC Realty and HDFC Developers to Quikr India for Rs 357 crore in an all-stock deal.
India’s largest mortgage lender HDFC on Thursday said it will sell its subsidiaries HDFC Realty and HDFC Developers to Quikr India for Rs 357 crore in an all-stock deal. As a part of the deal, HDFC will acquire an equity stake in Quikr, it added. In a stock exchange notification, HDFC said that it has “approved the sale of 100% of the equity share capital of HDFC Developers and HDFC Realty, its wholly-owned subsidiary companies, to Quikr India at a total consideration of Rs 101.99 crore and Rs 254.98 crore, respectively”. Quikr will integrate HDFC’s real estate brokerage platform HDFC Realty and HDFC Developers, which runs the HDFC Red platform, with its own platform. The transaction also envisages a co-branded alliance between HDFC and Quikr. HDFC Realty is HDFC’s 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 a 7,000-strong nationwide broker network. For the year ending March 31, 2017 HDFC Developers contributed Rs 6.23 crore to HDFC’s turnover, which amounts to 0.01% of the consolidated turnover.
The HDFC Red platform is an online real estate classifieds platform with 7,000 project listings. It generates traffic of over 80,000 unique visitors per month. It contributed Rs 35.25 crore in the last fiscal to HDFC’s turnover, representing 0.06% of the consolidated turnover. With 300 lakh monthly users, Quikr is one of India’s largest classifieds platforms, which runs multiple vertical businesses across real estate, automobiles, jobs, services and goods. Commenting on the development, HDFC’s MD Renu Sud Karnad said, “We hope to derive value from Quikr’s diversified customer base, while offering our strengths in the real estate sector.”