Carlyle to own 5.6 per cent stake in HDFC

Mumbai, May 25, (UNI) Housing Development Finance Corporation Limited (HDFC), India's leading housing finance company, announced today that global private equity firm 'The Carlyle Group' ('Carlyle') will purchase 15.25 million shares in HDFC through a preferential allotment at the rate of Rs 1,730 per share.

On the close of the transaction, Carlyle will own a 5.6 per cent stake in HDFC.

The investment will be made by Carlyle Asia Partners (CAP), which manages over USD 2.5 billion and makes large sized investments across non-Japan Asia. The proceeds will support HDFC's continued investment in banking, life insurance and mortgage businesses. The transaction is subject to shareholder approval and is expected to close in July this year.

In a statement, Deepak Parekh, Chairman of HDFC, said, " We are delighted to invite Carlyle as a key shareholder. Carlyle's approach to investments is long-term and partnership oriented. We value that orientation." Rajeev Gupta, Managing Director of Carlyle in India, said, " HDFC is one of the best managed Indian companies. Carlyle, which has made a number of successful investments in financial institutions, is honored to be a shareholder in this remarkable Indian Institution." Carlyle was advised by investment bank DSP Merrill Lynch, Gupta said.

UNI