HDFC GETS NOD FOR RS24,000 CRORE FDI

The for­eign equity will re­main capped be­low 74 per cent

The Gulf Today - Business - - FRONT PAGE -

NEW DELHI: The Cabi­net on Wed­nes­day ap­proved Rs24,000 crore for­eign di­rect in­vest­ment (FDI) into HDFC Bank, Fi­nance Min­is­ter Piyush Goyal said in New Delhi.

“Even with this in­fu­sion the for­eign equity will re­main capped be­low 74 per cent,” Goyal said at a press con­fer­ence while an­nounc­ing Cabi­net de­ci­sions.

Mean­while the real es­tate firm Homekraft on Wed­nes­day said that it has di­luted mi­nor­ity equity stake to HDFC Cap­i­tal Af­ford­able Real Es­tate Fund.

Ac­cord­ing to the real es­tate firm, the in­vest­ment made by the fund, man­aged by HDFC Cap­i­tal Ad­vi­sors, which is in turn a 100 per cent sub­sidiary of HDFC, is “one of the rare en­tity level, equity in­vest­ments in the real es­tate sec­tor”.

As per a com­pany state­ment, Homekraft will in­vest over $300 mil­lion for the de­vel­op­ment of af­ford­able and mid-in­come hous­ing across In­dia with a mix of in­ter­nal ac­cru­als, debt and pri­vate equity funds.

Be­sides, the real es­tate firm which is an ATS Group com­pany, is look­ing to clock sales of 6,0006,500 units in the next 3-5 years with ex­pected rev­enue in the range of $600-$750 mil­lion.

“The af­ford­able hous­ing seg­ment is ex­pected to see healthy growth go­ing for­ward given the im­pe­tus pro­vided by the govern­ment through var­i­ous in­cen­tives and sub­ven­tion scheme,” HDFC’S Man­ag­ing Di­rec­tor, Renu Sud Kar­nad said in a state­ment.

FI­NANC­ING

“HDFC is de­lighted to part­ner with a re­puted devel­oper like ATS for their foray in this seg­ment and our funds will pro­vide flex­i­ble fi­nanc­ing to Homekraft to meet its cap­i­tal re­quire­ments and ad­dress the de­mand-sup­ply gap in af­ford­able hous­ing in In­dia.”

For­eign buy­ing in HDFC Bank Ltd. has driven over­seas in­flows so far this month even though in­vestors didn’t ex­actly rush in to in­crease their hold­ing in the pri­vate lender as ex­pected.

For­eign port­fo­lio in­vestors net bought Rs2,434 crore worth of eq­ui­ties from June 4 to 7, ac­cord­ing to data re­leased by Na­tional Se­cu­ri­ties De­pos­i­tory. They ac­quired HDFC Bank’s shares worth Rs 2,780 crore alone dur­ing the pe­riod. Data for June 8 (Fri­day) wasn’t avail­able as de­pos­i­to­ries dis­close it with a day’s lag.

For­eign buy­ing in HDFC Bank Ltd. has driven over­seas in­flows so far this month even though in­vestors didn’t ex­actly rush in to in­crease their hold­ing in the pri­vate lender as ex­pected.

For­eign port­fo­lio in­vestors net bought Rs 2,434 crore worth of eq­ui­ties from June 4 to 7, ac­cord­ing to data re­leased by Na­tional Se­cu­ri­ties De­pos­i­tory Ltd. They ac­quired HDFC Bank’s shares worth Rs 2,780 crore alone dur­ing the pe­riod.

Con­trary to mar­ket ex­pec­ta­tions, for­eign port­fo­lio in­vestors (FPIS) showed lit­tle ap­petite last month for shares of the coun­try’s high­est valued lender, HDFC Bank, even as the win­dow for more buy­ing of its stock opened af­ter more than a year. The ear­lier oc­ca­sion when the FPI win­dow had opened in Fe­bru­ary 2017, there was huge rush to buy the stock.

Ac­cord­ing to data from the stock ex­changes, only 14 mil­lion shares of the pri­vate sec­tor lender were ear­marked for de­liv­ery; there was room to buy 43.6 mil­lion.

Homekraft has di­luted mi­nor­ity equity stake to HDFC Cap­i­tal Af­ford­able Real Es­tate Fund.

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