NRI Real Estate and Property Investment in India
 |  WWW.NRIREALTYNEWS.COM
IREF- Join Now
 
Highest Ever Private Equity Investment - Carlyle, Citigroup in HDFC
Tuesday, May 29, 2007

Global private equity giant, the Carlyle Group and Citigroup will invest in USD 767 million (Rs.3, 114 crore) in the Housing Development Finance Corporation.

The capital would be used by HDFC to expand its life insurance business and hold its shares in its banking business, the HDFC Bank. 5.63 % of HDFC’s equity capital will change hands, as CMP Asia Ltd. a Carlyle group company, prepares to buy up 1.53 crore shares on a preferential basis.

This entails an investment of Rs.2, 638 (USD 650 million) at the rate of Rs. 1,730 per share. As for Citigroup, Rs. 500 crore will be spent to purchase 27.5 lakh shares of HDFC, augmenting its current share of 9.5% stake in the bank.

This is the first time that HDFC is offloading its shares in the last 12 years. Meanwhile, its banking arm, HDFC Bank has plans to raise around Rs. 4,200 crore (USD1 billion), which would dilute HDFC’s current holding of 23%. Rs. 1,400 crore of the funds from the PE investment would be used to maintain its share in the bank, while Rs.1200 crore would be invested in HDFC Standard Life Insurance.

Rs. 500 crore of the PE funds would be deployed in its own business. Once the deal with Carlyle is signed, it will be the largest private equity transaction in India.

Related Readings :

NRIs Investment in Indian Equities
Private Equity and Investments in India
Private Equities to Fund Construction Companies

Add to your Social Bookmarks:
ADD TO DEL.ICIO.US ADD TO DIGG ADD TO FURL ADD TO NEWSVINE ADD TO NETSCAPE ADD TO REDDIT ADD TO STUMBLEUPON
ADD TO TECHNORATI FAVORITES ADD TO SQUIDOO ADD TO WINDOWS LIVE ADD TO YAHOO MYWEB ADD TO ASK ADD TO GOOGLE  

 

 

Return to India

NRI INSURANCE

NRI SERVICES

 

Indian Cities Guide

DELHI   NOIDA   GHAZIABAD
         
GURGAON   MUMBAI   AHMEDABAD
         
KOLKATA   CHENNAI   HYDERABAD
         
BANGALORE   PUNE   CHANDIGARH
         
..More cities »
NRI Communities in Different Countries  
Indian Embassies & Consulates in Different Countries
 
NRI Newsletters  
NRI Feeds - Syndications