InvestorQ : Why is HDFC planning to sell part of its stake in group companies?
Chandralekha Desai made post

Why is HDFC planning to sell part of its stake in group companies?

Answer
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Mitali Bhutta answered.
3 months ago


You may recollect the huge demand for the recent decision by HDFF to sell part of its stake in HDFC Life last week. Now HDFC is looking at a partial stake sale to raise $1 billion as HDFC anticipates a sharp pick up in loan demand once the economy opens up. While the final decision is yet to be taken, investment bankers have been recommending an institutional stake sale. Unlike a lot of other NBFCs in the Indian economy that are under severe stress, HDFC has the best capital adequacy of 17.7% with potential unrecognised gains worth Rs.1.70 trillion in unlisted investments. That would mean that HDFC is actually sitting on a goldmine.