HDFC Bank Share Sale: BNP Paribas Offloads Rs 755 Crore Stake; Citi Morgan Stanley Lift Shareholding
Citigroup Global Markets Mauritius Pvt. Ltd. acquired 26.25 lakh shares, which is a 0.03% stake in HDFC Bank, for Rs 453 crore.
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Description: A HDFC Bank branch.
(Source: Usha Kunji/NDTV Profit)
BNP Paribas Financial Markets pared a stake worth Rs 755 crore in HDFC Bank Ltd. through a bulk deal on the Bombay Stock Exchange on Thursday.
BNP Paribas Financial Markets sold 43 lakh shares, or a 0.05% stake, in HDFC Bank at a price of Rs 1,726.2 apiece, according to the data available on the BSE.
Morgan Stanley Asia (Singapore) Pte. bought 17.5 lakh shares, or a 0.02% stake in HDFC Bank amounting to Rs 302 crore.
Citigroup Global Markets Mauritius Pvt. Ltd. bought 26.25 lakh shares or a 0.03% stake in HDFC Bank amounting to Rs 453 crore.
BNP Paribas Financial Markets previously sold a stake valued at Rs 543.27 crore in HDFC Bank Ltd. on Tuesday through open market transactions. The fund house offloaded 30.72 lakh shares, which is a 0.04% stake, at a price of Rs 1,768.05 per share, according to block deal data from the BSE.
HDFC Bank lost Rs 34,481 crore on Thursday, with its market capitalisation dropping to Rs 12.82 lakh crore.
HDFC Bank plans to sell loan assets worth around Rs 60,000-70,000 crore to boost liquidity and lower its credit-deposit ratio. NDTV Profit reported last month. The bank is expected to focus on selling mortgages and car loans. India's largest private sector bank may use certificates to facilitate these sales, according to sources.
The bank is using a less common financial tool called 'pass through certificates' for this sale. These certificates provide holders with fixed income from a group of assets, such as loans. This could potentially be the largest sale of PTCs in India, according to an insider.
Shares of HDFC Bank Ltd. closed 2.55% lower at Rs 1682.15 apiece, as compared with a 2.10% fall in the benchmark BSE Sensex.
It has declined 11.55% in the last 12 months and 1.61% on a year-to-date basis. The relative strength index was at 56.98.
Out of the 47 analysts tracking, 38 have a 'buy' rating on the stock, 9 recommend a 'hold' and 0 suggest a'sell', according to Bloomberg data. The average 12-month Bloomberg analyst consensus price target implies a potential upside of 12.6%.
