In one of the biggest stock sales in India, British financial services firm Standard Life sold off its entire stake in leading home loan firm Housing Development Finance Corporation to American financial giant Citigroup. Standard Life stake sold today is valued at Rs 3,020 crore as per today’s market price.The board of HDFC approved the sale of 9.27 per cent stake by Standard Life including those under the foreign direct investment route to Citigroup is subject to regulatory and other approvals, a statement to the stock exchanges by HDFC said.The HDFC board authorised its chairman Deepak Parekh to issue a letter to the Foreign Investment Promotion Board granting its consent to the transfer of shares. After the deal is approved, Citigroup will nominate a special director on HDFC’s board.Standard Life held 9.27 per cent stake in the mortgage lender through one of its arms SLAC (Mauritius Holdings). In June last year, Standard Life had sold 4.9 per cent stake in HDFC for $234 million (Rs 1,029.6 crore).HDFC shares were down 0.45 percent at Rs 1,305.80 in a firm Mumbai market.The British insurer also holds 26 per cent stake in HDFC Standard Life Insurance Co, a joint venture between the two companies. With Standard Life selling its stake in HDFC, analysts say the future of its insurance venture with HDFC also looks uncertain. Standard Life has 26 per cent stake in the insurance venture while HDFC holds the rest. Standard Life has announced that it will increase its stake in the insurance venture as soon as the government allows increased foreign holding.With Citigroup acquiring the stake, HDFC is having the largest number of foreign shareolders with 78 percent of its shares held by the foreigners.Profit in Q4 up 23%MUMBAI: Riding on a home loan boom, Housing Development Finance Corp on Tuesday announced a better-than-expected 23 per cent rise in its fourth-quarter profit. While net income rose to Rs 427 crore in the three months ended March 31 from Rs 348 crore a year earlier.aw Revenue rose to Rs 1,240 crore from Rs 955 crore.A dividend of Rs 20 a share for the fiscal year 2006 will be paid to shareholders, the company said.Profit after tax for the year amounted to Rs 1, 257.30 crore as compared to Rs 1,036.59 crore for the previous year, an increase of 21 per cent. This is after providing Rs 300 crore for tax (previous year Rs 220.20 crore).
