India's Housing Development Finance Corp. decided on Friday to sell shares to private equity firm Carlyle Group and Citigroup, joining other firms seeking funds to meet robust demand in India.
HDFC, India's largest mortgage firm, will sell 18 million shares, or 7.11 percent of the equity, to the firms at 1,730 rupees a share to raise up to 31.14 billion rupees ($767 million), the company said in a statement.
After the share sale, Citigroup's holding in HDFC will remain at 12.3 percent, while Carlyle will have 5.6 percent, it said.
HDFC's move follows ICICI Bank, which has announced plans to raise up to $5 billion in share sale to feed the strong demand for loans from companies for expansion and individuals to buy cars and homes.
New York-listed HDFC Bank, founded by HDFC, has also announced plans to raise $1 billion through a share sale.
HDFC, which holds 23 percent in HDFC Bank, has agreed to invest about 13.9 billion rupees in the bank's planned share sale.
The mortgage firm, which recently broke its general insurance venture with Chubb Corp. of the United States, is expected to seek a new partner for insurance.
“The proceeds will support HDFC's continued investment in banking, life insurance and mortgage businesses,” HDFC said.
Source : Reuters