Housing Development Finance Corporation (HDFC) said it has divested 19.9% of India Asset Recovery Management Ltd (IARM) in an all-cash deal for Rs 96.94 lakh.
HDFC said that it sold its entire stake of 7,960 ordinary Class B shares of the Mauritius-based firm to investment firm WL Ross & Co. LLC.
IARM provides investment management services to India Asset Recovery Fund LP. HDFC’s filing said that IARM’s net worth was $689,473 as on December 31.
The listed lender did not specify what it would use the cash proceeds for.
HDFC, established in 1997, is among the top housing finance companies (HFCs) in India and counts Government of Singapore (GIC), India’s largest insurer Life Insurance Corporation of India (LIC) and Invesco Oppenheimer Developing Markets Fund among its shareholders.
Earlier in the day, World Bank's International Finance Corporation announced its intention to make a debt investment of up to $250 million in HDFC.
Last month, the mortgage financier acquired an 8.42% stake in Ansal Housing Ltd by invoking pledged shares for recovery of loans.
It sold a 24.48% stake in on-campus student housing platform Good Host Spaces for Rs 216.18 crore to US private equity firm Warburg Pincus.
