HDFC To Sell 10% Stake In HDFC Capital To Abu Dhabi Investment Authority

HDFC Ltd said on Wednesday it was selling 10% stake in its unit, HDFC Capital, to an arm of Abu Dhabi Investment Authority for Rs 184 crore ($24.09 million).

The deal comes two weeks after HDFC and HDFC Bank, the country's largest private-sector lender, floated merger plans to create a financial services behemoth to tap rising demand for credit.

Set up in 2016, HDFC Capital manages private-equity funds focused on the real estate sector in India, besides managing a nearly $3 billion funding platform.

"Investment by ADIA will enable HDFC Capital to leverage ADIA's global expertise and experience to further propel HDFC Capital towards becoming a leading investment platform for global and local investors," HDFC Chairman Deepak Parekh said in a statement.

ADIA is also the primary investor in the alternative investment funds managed by HDFC Capital, the release said.

HDFC said it is also in active discussions with leading global investors to raise additional funds for the development of affordable and mid-income housing projects in India.

HDFC shares, which have slumped 16.1% year-to-date, were up 1.3% on Wednesday following the announcement.