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.
After the Blackstone-HDFC-Barclays BPO deal, another big player Citigroup is in talks to sell 80% stake in its BPO arm Citigroup Global Services (formerly eServe International).
The deal could be all-cash worth $700-750 million (Rs2,870-3,075 crore), valuing it at around $0.95billion.
Previously companies like IBM, TCS, Wipro, Infosys and ADP were said to be interested in acquiring the company. But now reports say that a leading Private Equity investor could emerge out to be the winner.
The likely reason for fallout of the strategic investors is the lack of long term commitment from Citi. It was only willing to offer maximum 3-year contract unlike GE which offered multi-year outsourcing contract.
Unconfirmed report cite 3i, Blackstone and Carlyle as the potential suitors.
After rumours of two Patni brothers selling out their 28% stake to a clutch of foreign PE players, now another PE player, UK based Apax partners has jumped into the fray and wants to buy stake of 2 promoter brothers and General Atlantic’s 16% stake for over $800 million, valuing the company at around Rs. 725 crores.
For the stake, APAX may pay upto 10% premium to the exisitng price. As a results Patni scrip on NSE touched an intraday high of Rs. 567, a 5% jump over previous day close. The deal if happens would be the biggest in Indian IT surpassing the Oracle-I-flex, EDS-Mphasis and buyout of Flextronics (formerly Hughes Software Systems) by Kohlberg Kravis Roberts.
Update (09-June-07): ET has written that the media face and in charge of operations of Patni Computer, Mr. Narendra Patni would retain his 14% stake, while the 2 younger brothers would sell theirs. Another PE player, Carlyle is reported interested in the deal.
The corporate battles are being foight inside homes these days rather than in closed-room offices. After the recent Bajaj division and Reliance demerger, another family owned IT company - Patni Computer Services is on verge of being restructured.
If reports are to be believed, then major international software players like IBM, CSC and PE firms like Blackstone and Carlye are eyeing a stake in the company. PCS is among the top 10 IT companies of India and among the oldest. But compared to its peers, like Infosys, TCS, WIpro, Satyam, it’s performance has been a laggard.
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.
After the 
After rumours of two 
The corporate battles are being foight inside homes these days rather than in closed-room offices. After the recent Bajaj division and Reliance demerger, another family owned IT company - Patni Computer Services is on verge of being restructured.
