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Friday, October 5, 2012

HDFC drops as Carlyle exits

Housing Development Finance Corp Ltd (HDFC) shares plunged nearly five per cent after private equity player Carlyle Group LP exited from the company by selling its remaining stake for about Rs 4,300 crore.

On the BSE, the HDFC stock closed at Rs 749.65, down 4.89 per cent from its previous close. The stock touched an intra-day 52-weekhigh of Rs 793.85.

The Carlyle Group sold about 57 million shares or the entire 3.7 per cent stake in HDFC through the open market. The shares were sold at an average price of Rs 761.42 a share.

Citi helped raise Rs 4,340 crore for Carlyle Group by selling their residual stake in HDFC, concluding the largest block trade stake monetisation by a private equity investor in India.

“The deal attracted over 45 marquee global and local institutional investors, with 75 per cent of the demand originating from long only institutional investors,” said Bhavna Thakur, Director, Equity Capital Markets Origination at Citi India.

In February, Citigroup Inc sold its entire 9.85 per cent stake in HDFC for about $1.9 billion.

“Carlyle’s exit will not impact HDFC in any way,” said Madhumita Ghosh, Head of Research, Unicon Financial Intermediaries.


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