The bank will sell its 145 million shares in HDFC in the price tag between INR630 and INR703.55 per share, which will fetch the abovesaid desired amount, reported Reuters.
HDFC chief executive Keki Mistry quoted by the news agency as saying that the company had been informed about the launch of the deal by Citi, but he refused to provide further information pertaining to the deal.
The latest inititative of the bank reflects’ the impact of the European debt crisis, which forced the bank to rebuild its operations globally, which sustained an 11% drop in its latest quarterly profit.
According to Thomson Reuters data, the latest deal of the Citi group will take it to the top of India’s equity capital market league table. Citi is the sole bookrunner for the deal.
In June last year, Citi the largest shareholder in HDFC disposed 1.5% holding in the Indian bank, which will cater a pre-tax profit of $160m for the bank.
In 2006, the US bank acquired nearly 10% stake of HDFC for INR29bn ($4.6bn), and consequently it reached as the largest shareholder with 11.37% stake in HDFC, said Citi group.
