Citigroup to sell entire stake in HDFC for around Rs10,353 crore: report

Citigroup Inc plans to sell its entire stake in premier housing financier Housing Development Finance Corp (HDFC), which may fetch the New York-based lender around Rs10,353 crore ($2.1 billion), Reuters today reported, citing three sources.

Citigroup has launched the process to sell about 145 million shares, or a 9.9-per cent stake, in India's top mortgage lender for between 630 rupees and 703.55 rupees per share, said the sources, declining to be named as the deal is not public yet.

Citigroup, the single largest institutional shareholder in HDFC, is looking to sell 145.3 million shares, or a 9.85-per cent stake, through block deals for between Rs630 and Rs703.55 per share, said the news agency.
The offer is at a discount of as much as 10.45 per cent to the stock's closing price today. The HDFC stock ended down 0.1 per cent ahead of the news, at Rs701.30.

Citigroup, an investor in HDFC since 2005, held 11.4-per cent stake in India's largest mortgage lender through Citigroup Strategic Holdings Mauritius and Citigroup Holdings Mauritius.

In June 2011, Citigroup sold 1.65 crore shares for Rs643 each, paring its holding from 11.4 per cent to 9.9 per cent in order to meet upcoming Basel III norms.

Private equity fund Carlyle Group LP had, earlier this year, sold its stake in HDFC. Carlyle divested 20 million shares in HDFC at Rs677 apiece, raking in about Rs1,350 crore ($273 million), reports quoting sources with knowledge of the sale said.