HDFC Property Ventures and HDFC Venture Cap to be merged
HDFC Property Ventures – The plan to merge with another group company, HDFC Capital Advisors, has been accepted by the two totally owned subsidiaries of Housing Development Finance Corporation, India’s largest private sector mortgage lender.
The merged platform would provide advice and oversee assets worth about $4.1 billion, making it India’s largest real estate private equity firm.
The proposed amalgamation plan is for merging the transferor businesses into HDFC Capital Advisors, the transferee business, and for dissolving the transferor businesses without winding them up.
Prior to the merger of HDFC Bank and the non-banking finance company HDFC, the effort aims to consolidate and streamline the operations of the entities engaged in the real estate investment sector.
The shareholders of HDFC Property Ventures will receive 1,374 shares of HDFC Capital Advisors at Rs 10 each following the proposed merger of the two companies.
Additionally, the shareholders of HDFC Venture Capital will receive 638 shares of HDFC Capital Advisors worth Rs 10 each after the proposed merger of the two companies.
HDFC Property Ventures
According to the NBFC in a regulatory filing, there won’t be any changes to the HDFC’s shareholding structure as a result of these transactions.
The proposed merger is anticipated to result in effective administration, group structure simplification, streamlining, and optimization. Additionally, this will enable more effective cash management and unrestricted access to the merged company’s cash flow, which may then be used more effectively to increase shareholder value.
Among these organisations, HDFC Property Ventures offers investment advisory services, HDFC Venture Capital manages investments for a venture capital fund that is registered with SEBI, and HDFC Capital Advisors manages investments for alternative investment funds that are registered with SEBI.
In April, HDFC and an associate of the Abu Dhabi Investment Authority (ADIA) agreed to sell 10% of HDFC Capital Advisors’ fully diluted paid-up share capital for about Rs 184 crore.
Following the equity sale, which valued HDFC Capital at more than Rs 1,840 crore, HDFC still holds the remaining 90% stake. The majority shareholder in the alternative investment funds run by HDFC Capital is the sovereign wealth fund held by the Emirate of Abu Dhabi. This is the first time ADIA has ever invested in a fund manager globally.
It oversees a $3 billion fundraising platform that is one of the biggest private finance platforms in the world devoted to the construction of affordable homes. The funds administered by HDFC Capital offer long-term, flexible financing throughout the whole lifecycle of projects for affordable and middle-income housing, including finance for the early stages.
With a focus on sustainability, HDFC Capital aims to use a combination of creative financing, partnerships, and technology to fund the construction of one million affordable homes in India.