HDFC to sell 0.62% stake in HDFC ERGO

Housing Development Finance Corporation Ltd. (HDFC), in accordance with the direction of Reserve Bank of India to reduce its shareholding in HDFC ERGO to 50% or below, has today entered into a share purchase agreement for sale of 44,12,000 equity shares of Rs. 10 each, representing 0.62% of the issued and paid-up share capital of HDFC ERGO.

The sale of 44,12,000 equity shares of HDFC ERGO by HDFC, Indian promoter of HDFC ERGO to ERGO International AG, foreign promoter of HDFC ERGO. ERGO International AG does not belong to the promoter/ promoter group of HDFC.

The total income of HDFC ERGO for the year ended March 31, 2021 was Rs. 7,557.50 crore, which was 5.43% of the consolidated income of HDFC.

The networth of HDFC ERGO as at March 31, 2021 was Rs. 3,253.55 crore which was 1.96% of the consolidated net worth of HDFC.

Subsequent to the above sale, HDFC ERGO would cease to be a subsidiary company of HDFC under the provisions of the Companies Act, 2013.

Shares of HOUSING DEVELOPMENT FINANCE CORP.LTD. was last trading in BSE at Rs.2496.25 as compared to the previous close of Rs. 2430.55. The total number of shares traded during the day was 224612 in over 15919 trades.

The stock hit an intraday high of Rs. 2507 and intraday low of 2439. The net turnover during the day was Rs. 555751082.

Source : Equity Bulls

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