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HDFC hikes FII’s shareholding limit to 100 per cent

19 May 2012 Evaluate

India's biggest mortgage company, Housing Development Finance Corporation (HDFC)’s board has given approval for raising foreign institutional investors (FIIs) shareholding limit to 100 per cent. The move is forerunner to upcoming conversion of company's warrants into equity by foreign investors that would extend the overall FII holding in HDFC beyond 74 per cent. The warrants issued by the Corporation in August 2009 representing about 3.57% of the diluted equity share capital, are due for exchange into equity shares on or before August 24, 2012.

Financial conglomerate, Citigroup, in February 2012, sold its entire stake of 9.85% held in the Corporation that was held under the FDI route. These shares were primarily acquired by FIIs. Consequently, the FII shareholding in the Corporation now stands at about 66.7%.

The company posted a rise of 16.13% in its net profit at Rs 1326.14 crore for the quarter ended March 31, 2012 as compared to Rs 1141.95 crore for the same quarter in the previous year. Its total income has increased by 29.43% at Rs 4884.75 crore for quarter under review as compared Rs 3774.13 crore for the quarter ended March 31, 2011.

For the full year ended March 31, 2012, the company has posted a rise of 16.62% in its net profit at Rs 4122.62 crore for the year ended March 31, 2012 as compared to Rs 3534.96 crore for the same period in the previous year. Total income has increased by 34.86% at Rs 17332.94 crore for year under review as compared to Rs 12852.93 crore for the period ended March 31, 2011.

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