Citigroup buys a stake in HDFC
Economic Times: Citigroup has acquired a 9.27% stake in India’s HDFC. The deal will add to Citigroup’s 3.59% stake that it already has in HDFC. The Rs 3,020-crore deal, once cleared by the regulatory authorities, will make Citigroup the biggest shareholder in HDFC. Citigroup is buying the shares from UK Insurer Standard Life.
Meanwhile, HDFC holds a 21.99% in HDFC Bank (NYSE: HDB). While Citi will emerge as the biggest shareholder in HDFC, it will have no direct holding in HDFC Bank, in which DBS, the Singapore-based bank, acquired over 4per cent. In the past, the market has often speculated about a merger of HDFC and HDFC Bank. In the medium-term, such speculation could be rekindled.
Posted on Tuesday, May 2nd, 2006 at 8:54 pm
In HDFC Bank |
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May 17th, 2006 at 4:26 pm
what do you think aobut hdb?? hows that bank compare with icici
May 19th, 2006 at 6:42 am
I like both ICICI and HDB long term. There might be some short term speculation with the overheated Indian stock market which seems to be heading down just as the US market. HDB has much more room for growth due to its lower marketcap and I have also read that Citigroup might buy a bigger stake in HDFC starting in 2009. I am going to write about this soon. I will try and compare the two this weekend and post it.