Carlyle, Citigroup to acquire 7.11 pc in HDFC for Rs3,114 cr
Mumbai: India's leading housing finance company, Housing Development Finance Corporation (HDFC) plans to raise Rs3,114 crore through a preferential issue to private equity investors The Carlyle Group and leading US-based financial services group Citigroup. The housing finance company will use the funds, to increase stake in its subsidiary HDFC Bank and for investing in its insurance business.

The Carlyle Group will acquire a 5.6 per cent stake for Rs2,638.25 crore. HDFC will issue 15.25 million shares to The Carlyle Group at Rs1,730 apiece through a preferential allotment. The price is at a 6.9 per cent premium over the average weekly high and low closing share price of HDFC in the past six-month period. The investment will be made by Carlyle Asia Partners.

HDFC will also issue on a preferential basis 2.745 million shares to Citigroup for Rs475 crore, which will help Citigroup maintain its stake in the company at 12.3 per cent.

The investors have a lock-in of 18 months, against the regulatory requirement of 12 months.

HDFC will use the funds to pump in capital into its insurance venture, HDFC Standard Life Insurance Company Ltd, maintain its majority stake in HDFC Bank and also support the mortgage business.

HDFC is planning to infuse around Rs600 crore into its insurance venture and has earmarked almost Rs1,400 crore to maintain its majority stake in HDFC Bank.

HDFC Bank is planning to mobilise around Rs4,200 crore through an overseas issue. This capital issue will see the HDFC stake come down from the current 21.56 per cent.

Hence, HDFC Bank has decided to make a preferential issue of 13.5 million shares to HDFC at Rs1,023.49 apiece. This investment will ensure that HDFC maintains its shareholding in HDFC Bank at 22 per cent.
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Bilcare makes preferential allotment
Kolkata: Bilcare has made preferential allotments to non-promoters and converted warrants, also held by non-promoters. The paid-up capital of the company has increased therefore and now stands at Rs15.09 crore from Rs14.20 crore as on March 31, 2007. On May 17, the company allotted 8.93 lakh shares of Rs10 each on conversion of warrant `B' issued at Rs290 per share including premium.

These shares were issued to a total of 26 non-promoters and many of them are existing shareholders, including Rakesh Jhunjhunwala.

Jhunjhunwala (including relatives and associates) has also increased his holding through preferential allotment. On May 17, Jhunjhunwala and 8 other persons acting-in-concert have been allotted 21.51 lakh shares by virtue of which their holding has gone up to 14.25 per cent in the company from 11.62 per cent on March 31, 2007.

The paid-up capital of the company is slated to go up further as conversion of 15 lakh warrants, allotted to Nutan Bhandari of the promoter group in December 2006 and at a conversion price of Rs535 (including premium of Rs525) takes place after 18 months from the time of warrant allotment.

The company has also allotted 5,000 foreign currency convertible bonds (FCCBs) of face value of $10,000 each, aggregating $50.00 million, including offering under greenshoe option. The FCCB conversion into equity shares (at Rs880 per share) is slated for 2010.
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