Citi to raise $2.1 bn selling HDFC stakehttps://indianexpress.com/article/news-archive/web/citi-to-raise-2-1-bn-selling-hdfc-stake/

Citi to raise $2.1 bn selling HDFC stake

Citigroup Inc plans to raise up to $2.1 billion by selling its entire stake in mortgage lender HDFC as part of the US bank’s efforts to shore up its capital base,three sources with direct knowledge said

Citigroup Inc plans to raise up to $2.1 billion by selling its entire stake in mortgage lender HDFC on Friday as part of the US bank’s efforts to shore up its capital base,three sources with direct knowledge said.

The transaction is the largest share sale this year in India and comes close on the heels of investors such as Carlyle paring their stakes in Indian companies after a sharp surge in the domestic markets in 2012.

Analysts said more stake sales via block deals in the stock market are likely to take place in the near future,as buyout firms and strategic investors look to cash in on investments made before the 2008 global financial crisis.

Citigroup has launched the process to sell about 145 million shares,or a 9.9 per cent stake,in HDFC for between Rs 630-703.55 per share,said the sources,declining to be named as the deal is not public yet.

Shares in HDFC,which has a market value of $21 billion,ended down 0.1 percent at Rs 701.30 on Thursday in a weak Mumbai market ahead of the news.

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