HDFC to sell 10% equity in HDFC Capital to ADIA for ₹184 crore

This will help leverage ADIA’s global expertise and experience, says Deepak Parekh

HDFC Ltd has entered into binding agreements to sell 10% of the fully diluted paid-up share capital of HDFC Capital Advisors Ltd, its wholly-owned subsidiary, to a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for approximately ₹184 crore. 

ADIA is also the primary investor in the alternative investment funds managed by HDFC Capital.

HDFC Capital, set up in 2016, is the investment manager to HDFC Capital Affordable Real Estate Funds 1, 2 & 3.

It manages an approximately US$3 billion funding platform.

The funds managed by it provide long-term, flexible funding across the lifecycle of affordable and mid-income housing projects, including early-stage funding.

Its target is to finance the development of one million affordable homes in India through a combination of innovative financing, partnerships and technology, while focusing on sustainability.

To achieve this objective, the company is in active discussions with leading global investors to raise additional funds to be invested in development of affordable & mid-income housing projects in India, HDFC said.