Carlyle owns over 3% post sale of 2cr shares: HDFC

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Carlyle owns over 3% post sale of 2cr shares: HDFC

Vice chairman and chief executive of HDFC, Keki Mistry tells CNBC-TV18 that PE firm Carlyle Group's stake in the bank has been pared down to over 3% after the sale of 2 crore shares.

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In an exclusive interview to CNBC-TV18, vice chairman and chief executive of HDFC , Keki Mistry, confirms that it is indeed Carlyle Group that was in the market to sell shares. "They have sold 2 crore shares out of the 7 crore they own, so they continue to remain invested with over 3% stake" he said.

Private equity firm Carlyle has been invested in HDFC since 2007, so Mistry believes that the sold the shares to take some profits. He goes on to say that it is unlikely that they will be in the market to sell the rest of their stake.

Talking about the buyers, Mistry says that the shares sold have been mopped up by domestic and foreign buyers, all who are long only investors.

Below is an edited transcript of his interview with Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video.

Q: With this block deal, could you confirm whether Carlyle indeed is the seller and what their remaining stake now stands at in HDFC?

A: We don't have the shares lodge with us confirming the thing directly, but yes from what we hear it is Carlyle who sold. They have sold 2 crore shares out of the 7 crore shares that they own. At the end of the day, they are private equity investors; we had a great relationship with them, but the money that they invested in HDFC is money which has to be returned back to investors after some period. They had invested in HDFC in 2007, so I guess that they taken some profit.

Q: Any communication that you have had with Carlyle which suggests that they might be looking to sell all the 7 crore shares in phases?

A: No, not to my knowledge. In fact, when I spoke to them, I understand that they have an internal rule or an internal policy that if they sold shares of a company they would not deal in those shares for a certain period of time. I don't know exactly what that period is, but its three or four months or something like that.

Q: So investors should not perceive that this will be an overhang on the HDFC stock?

A: I don't think so. If they wanted to, they would have sold the whole lot now. From what I understand from market, there was a reasonably good demand for the shares.

Q: While you may not be able to divulge the details of the exact buyer, can you give us a sense of whether the block has been transferred in one chunk or whether it's been a clutch of buyers that have picked up the 2 crore shares?

A: It would be clutch of buyers. Some would be domestic, many would be foreign and mostly would be long only investors.