Carlyle and Citi invest in HDFC

Carlyle pays $650 million to buy a minority stake in the Indian housing finance player, while Citi spends $117 million to maintain its current stake.
India's Housing Development Finance Corporation said on May 25 that it will raise Rs31.14 billion $767 million through an issuance of fresh equity shares to private equity firm, Carlyle Group, and US bank, Citi.

HDFC, which was formed in 1977, has grown to become one of IndiaÆs leading providers of housing finance with a client base of one million borrowers. It also has a presence across the financial services space with subsidiary or associate companies in mutual funds, commercial banking, life insurance and general insurance.

HDFC will price the 18 million shares, which represent 7.11% of its expanded capital, at Rs1730 per share. The shares are being issued on a preferential allotment basis and...
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