Citi Inc, one of the best and leading financial services company in the world has sold its whole stake (145.3 million shares in number or 9.85% of the total stake) which it invested in housing finance major HDFC for a whopping $1.9 billion which makes a sume of Rs 9,327 crore (INR).
Revealing about the details of this transaction Citi in an official statement says “The sale of Citi’s remaining stake in HDFC is part of Citi’s ongoing capital planning efforts … Total proceeds from the transaction are expected to be USD 1.9 billion at the current exchange rate”.
The complete sale of the stake in HDFC took place through National Stock Exchange at the rate of Rs 657.56 per share.
Pramit Jhaveri, Chief Executive Officer of Citi India in response to the sale says “We are pleased with the results of our investment in HDFC and will continue to value our long-standing relationship with the company. Citi remains deeply committed to India. We continue to focus on growth opportunities in this very important market”.
In response to the Citi’s actions, Keki Mistry, Vice-Chairman and CEO of HDFC says “As far as Citi is concerned, you know that how the capital market in the US are evolving and therefore it (in reference to sale of the stake) was necessary at some point for Citi. It was nothing to do with the performance of the company”.
After the sale, shares of HDFC are trading at Rs 676.26 (at the time of this writing) at BSE, which is 3.45 percent less than the previous close.