Mumbai: HDFC Ltd, the country's largest housing finance company, has sold two of its subsidiaries - HDFC Realty and HDFC Developers - to online classifieds firm Quikr.
Sources close to the all-stock deal said HDFC will pick up a stake of around 3.5 per cent in Quikr in lieu of the sale of its stake in the two subsidiaries for over Rs 355 crore. Quikr is understood to be valued at over Rs 10,000 crore.
HDFC on Thursday said it has entered into definitive agreements to transfer its entire shareholding in HDFC Realty Ltd, a real estate brokerage platform, and HDFC Developers Ltd - which runs the HDFC RED platform - to Quikr.
HDFC Realty is HDFC's offline brokerage business with a presence across residential and commercial properties and offers consulting and valuation services too.
HDFC Realty has a 300-member in-house sales team and a 7,000-strong nationwide broker network.
On the other hand, RED is an online real estate classifieds platform with around 7,000 projects listed on its website. It generates traffic of over 80,000 unique visitors per month.
In a BSE filing, HDFC said 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".
HDFC Developers contributed Rs 6.23 crore to HDFC's turnover in 2016-17, representing 0.01 per cent of the total consolidated turnover of the parent.
HDFC Realty contributed Rs 35.25 crore to HDFC's turnover during the last financial year, representing 0.06 per cent of the consolidated turnover.
Post integration of HDFC Realty and RED, Quikr will become India's leading online-to-offline real estate platform, and it will offer consumers end-to-end home buying services, HDFC said.
The deal is also expected to take HDFC a step further in engaging with customers at the start of their real estate purchase cycle, when they are browsing for properties on the Quikr's digital platforms.
