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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (8810)	10/22/1999 9:55:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Warburg takes 6% stake in HDFC for Rs 200 crore ($45 million) hdfcindia.com (Saturday, October 23, 1999) Pradipta Bagchi & Santosh Nair in Mumbai (BS) Private equity fund Warburg Pincus has bought a 6 per cent stake in financial institution HDFC Ltd for about Rs 200 crore. HDFC managing director Deepak Satwalekar confirmed that Warburg had picked up a six per cent stake in the housing finance company from the secondary market. The shares were bought over the last two months. On September 3 alone, 25 lakh HDFC shares were bought in a deal between two institutional investors brokered by SSKI. However, it could not be ascertained whether the 71.46 lakh shares bought by Warburg had been from foreign institutional investors (FIIs) or domestic funds. Satwalekar said the FIIs investment in HDFC had reached the 30 per cent limit ever since it was increased from 24 per cent last year. Since the FII investment limit had been achieved, Warburg would most likely have to seek the Foreign Investment Promotion Board?s (FIPB) permission to close the transactions. Warburg has also requested the HDFC board to pass a resolution supporting its purchase of the equity. Satwalekar declined to comment whether the board would support such a resolution and said the board would decide on the issue at in its next meeting. Market sources said Warburg had used the same method in its earlier investments. It had bought shares of Marico Industries from the secondary market before getting approval from the FIPB. In all, Warburg Pincus has invested over $100 million in variou listed and unlisted companies. Their major listed investments include Nicholas Piramal, Marico and HDFC. Among their major unlisted investments are Bharti BT and Rediff-on-the-net. In 1998-99, HDFC posted a profit after tax of Rs 333.9 crore on gross income of Rs 1,752 crore. It paid a dividend of Rs 8.5 on a Rs 10 share. The scrip closed at Rs 297 on the Bombay Stock Exchange Friday, down Rs 6.