HDFC thinks different, won’t require additional funds
Housing Development Finance Corporation has raised Rs.3100 crore by selling stakes to Citigroup Inc. and CMP Asia, a Carlyle unit. This is after 12 years that HDFC raised funds and does not foresee further capital requirement for next 3 years.
The foreign holding in HDFC is now 80.1% of which 12.6% is with Citigroup and 7.1% with Carlyle Group. HDFC’s stake in HDFC bank is currently at 21.6%.
In the next 2 years, HDFC plans to pump Rs.500 crore in its life insurance venture. Also, Standard Life Plc is expected to stake in the venture to maximum permitted 26% from 18% currently.
HDFC, after ending its alliance with Chubb Corp may have a new general insurance partner by next month.
But the real concerns which HDFC needs to are the rising interest rates and falling real estate prices, which could hamper its loan demand.
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Both Banking and Housing loans sections are doing well, HDFC must be sitting on tons of cash.