LONDON: 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 entered into a, agreement for sale of 44.12 million equity shares of Rs10 each, representing 0.62% of the issued and paid-up share capital of HDFC ERGO.
The buyer is 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.
HDFC will receive Rs2.364 billion as cash consideration, i.e. Rs536 per equity share.