Housing finance major Housing Development Finance Corporation has sold its entire 12 per cent stake in SBI Home Finance in the secondary market for {Rs 1.6 crore (Rs 16 million) Rs 11-14 per equity share}.
HDFC sold 10,67,363 shares of face value Rs 10 in the secondary market. With this, the corporation's shareholding in the SBI Home Finance Ltd has been reduced to zero, according to a National Stock Exchange notice. HDFC, an initial promoter in SBI Home Finance, has been selling shares in the secondary market over the last one week.
"The shares were sold at Rs 11-14 over the last one week. We have exited from SBI Home Finance in order to maintain our capital adequacy and to comply to the capital market exposure limit," said Conrad D'Souza, general manager, treasury, HDFC.
Along with the country's largest commercial bank State Bank of India, the corporation had set up SBI Home Finance -- then known as Housing Promotion Finance Corporation -- 16 years back holding a 20 per cent in it.
HDFC's capital adequacy rate now stands at over 13 per cent, above the stipulated minimum of 12 per cent. This deal will help it raising the capital adequacy ratio further.
HDFC's capital market exposure stands at below the 5 per cent, limit recently specified by National Housing Bank, the supervisor of housing finance companies. The new limit will apply by September 2004.
HDFC still holds stake in another housing finance company, Canfin Homes.
