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HDFC to sell 10% equity in HDFC Capital to Abu Dhabi Investment Authority

HDFC to sell 10% equity in HDFC Capital to Abu Dhabi Investment Authority

HDFC to sell 10% equity in HDFC Capital to Abu Dhabi Investment Authority
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By CNBCTV18.com Apr 20, 2022 11:00 AM IST (Updated)

HDFC has inked a binding pact to sell 10 percent of the share capital of HDFC Capital Advisors to the Abu Dhabi Investment Authority for about Rs 184 crores.

Housing Development Finance Corporation (HDFC) has entered into binding agreements to sell 10 percent of the share capital of HDFC Capital Advisors Ltd (HDFC Capital) to a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for about Rs 184 crores. ADIA is also the primary investor in the alternative investment funds managed by HDFC Capital.

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A wholly-owned subsidiary of HDFC, HDFC Capital is in the business of managing private equity funds focused on the real estate sector in India.
In a company statement, Deepak Parekh, Chairman – HDFC Ltd, said, “Six years ago we set up HDFC Capital with a vision of progressing in sync with the government's ‘Housing For All’ goal by increasing the supply of affordable homes in India. Supported by marquee global investors like ADIA, the funds managed by HDFC Capital have grown to create one of the world’s largest private financing platforms for the development of affordable housing. This investment by ADIA will enable HDFC Capital to leverage ADIA’s global expertise and experience to further propel HDFC Capital towards becoming a leading investment platform for global and local investors across multiple strategies and asset classes in real estate and technology ecosystem.”
Mohamed AlQubaisi, Executive Director of the Real Estate Department, ADIA, said: “HDFC Capital is one of India’s leading providers of affordable housing project finance, with an established track record of supporting the development of new residential stock across the country. This agreement builds on our successful investments in the H-CARE funds and underlines our belief in the positive long-term outlook for affordable and mid-market housing in India.”
Set up in 2016, HDFC Capital is the investment manager to HDFC Capital Affordable Real Estate Funds 1, 2 & 3; and is aligned with the Government of India’s goal to increase housing supply and support the Pradhan Mantri Awas Yojana - ‘Housing for All’ initiative. HDFC Capital manages an approximately US$3 billion funding platform which has recently been rated as one of the world’s largest private finance platforms focused on the development of affordable housing.
The development comes weeks after HDFC Bank announced its merger plan with HDFC, creating a major financial behemoth.
HDFC Bank shares traded at Rs 1,345, up 0.23 percent on NSE, while HDFC shares were up 0.34 percent.
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