Mumbai, Oct. 5: Carlyle Group, the private equity fund, today sold its residual 3.7 per cent in HDFC Ltd — the country’s largest housing finance company — for Rs 4,340 crore.
The sale was done through block deals on the Bombay Stock Exchange and the National Stock Exchange. It is learnt that foreign investors bought at least half the shares.
Carlyle started investing in HDFC in 2007 when it acquired 1.52 crore shares for over Rs 2,600 crore. In February this year, Carlyle sold part of its stake for $270 million (Rs 1,400 crore) at an average price of around Rs 677 per share.
CMP Asia Ltd, an arm of Carlyle, today sold 1.4 crore shares of the mortgage lender on the BSE at Rs 762.46 apiece. On the NSE, 4.3 crore shares were sold for Rs 761.08 apiece. Carlyle, thus, earned a 119 per cent return on its investments in HDFC.
The stake sale, however, had a negative impact on the HDFC scrip, which fell nearly 5 per cent, or Rs 38.55, to close at Rs 749.65 on the BSE today.
With domestic stock markets rising over 20 per cent in the current calendar year, many investors have used the opportunity to prune their holdings and walk away with neat gains.
In March, Khazanah Nasional sold its entire 4.2 per cent stake in private lender Yes Bank for $105 million (Rs 520 crore).
In the preceding month, Citigroup raked in $1.9 billion by offloading its entire stake in HDFC. The foreign bank sold 14.53 crore shares at a price of Rs 657.56 per share. The share sale accounted for 9.85 per cent of HDFC’s equity and resulted in Citigroup earning a pre-tax gain of $1.1 billion.
The Singapore government’s investment arm Temasek also sold part of its stake in ICICI Bank for over $300 million in February.
Foreign fund house Credit Suisse (Singapore) Ltd today sold 6.54 lakh shares of Vijay Mallya-owned United Spirits Ltd for a little over Rs 82 crore through an open market transaction.
In a separate bulk deal, HSBC Global Investment Fund Mauritius Ltd sold 6.4 lakh shares of batteries and flashlights maker Eveready Industries for Rs 1.30 crore.
On the BSE, United Spirits shares were up 0.56 per cent to close at Rs 1,261.05 apiece, while the stock of Eveready Industries slumped 3.77 per cent to settle at Rs 20.40 a share.