The combined platform will advise and manage assets of approximately $4.1 billion, making it India’s largest private equity firm.
The proposed scheme of amalgamation envisages merger with the transferor companies and in the transferee company HDFC Capital Advisors and without the dissolution of the transferor companies.
The exercise is aimed at consolidating and streamlining the operations of entities involved in the business of real estate investment prior to their merger with HDFC, a non-banking finance company.
Following the proposed amalgamation with HDFC Property Ventures and into HDFC Capital Advisors, the latter will be issued 1,374 shares of Rs 10 each to shareholders of the former.
In addition, following the proposed amalgamation of HDFC Venture Capital with HDFC Capital Advisors, 638 shares of the latter each of Rs 10 will be issued to the shareholders of the former.
The NBFC said in a regulatory filing that these transactions are not expected to lead to any change in the shareholding pattern of HDFC.
The proposed amalgamation is expected to simplify, streamline and optimize the group structure and efficient administration. It will also help achieve greater efficiency in cash management and provide seamless access to the cash flows generated by the combined business, which can be deployed more efficiently to maximize shareholder value.
Of these entities, HDFC Property Ventures provides investment advisory services, HDFC Venture Capital is an investment manager for a venture capital fund registered with SEBI, while HDFC Capital Advisors serves as an investment manager for a SEBI registered alternative investment fund. works.
In April, HDFC entered into an agreement to sell 10% of the fully diluted paid-up share capital of HDFC Capital Advisors to an affiliate of Abu Dhabi Investment Authority.Bye) for about Rs 184 crore.
After the sale of over Rs 1,840 crore stake in HDFC Capital, the remaining 90% stake remains with HDFC. The Sovereign Wealth Fund, owned by the Emirate of Abu Dhabi, is also the primary investor in an alternative investment fund managed by HDFC Capital. Globally, this is the first time ADIA has invested in a fund manager.
HDFC Capital, established in 2016, is the investment manager of HDFC Capital Affordable Real Estate Funds 1, 2 and 3; and is in line with the Government of India’s goal to increase housing supply and support the Pradhan Mantri Awas Yojana – ‘Housing for All’ initiative.
It manages a $3 billion funding platform which is rated as one of the largest private finance platforms in the world focused on the development of affordable housing. Funds managed by HDFC Capital provide long-term, flexible funding across the life cycle of affordable and medium-income housing projects, including early-stage funding.
HDFC Capital aims to finance the development of one million affordable homes in India through a combination of innovative financing, partnerships and technology, with a focus on sustainability.