Citi sells its entire stake in India's HDFC for USD 1.9 billion

New York/Mumbai, Feb 24 (PTI) Leading global financial services company Citi Inc has sold its entire stake in Indian housing finance major HDFC for USD 1.9 billion. "The sale of Citi's remaining stake in HDFC is part of Citi's ongoing capital planning efforts .... Total proceeds from the transaction are expected to be USD 1.9 billion at the current exchange rate," Citi said in a statement today. The bank said that it sold its entire holding of 145.3 million shares, or 9.85 per cent stake, in HDFC through Mumbai-based National Stock Exchange at Rs 657.56 (USD 13.36) per share. "We are pleased with the results of our investment in HDFC and will continue to value our long-standing relationship with the company. Citi remains deeply committed to India. We continue to focus on growth opportunities in this very important market," said Pramit Jhaveri, Chief Executive Officer of Citi India. Responding to the development, Keki Mistry, Vice-Chairman and CEO of HDFC said, "As far as Citi is concerned, you know that how the capital market in the US are evolving and therefore it (stake sale) was necessary at some point for Citi. It was nothing to do with the performance of the company". A leading Indian financial conglomerate HDFC has interests in banking, insurance, asset management and property funds. "Our combination of unique experience, deep relationships and valuable local insights provide us with strong competitive advantages", Jhaveri added. PTI