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Topic: HDFC- Huge value unlocking from subsidiary cos.

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pramodjain
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Joined: 29/Mar/2007
Location: India
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Posted: 16/May/2007 at 11:14am

Blackstone eyeing HDFC's stake in Intelenet?

According That makes it the 12th largest BPO company in India.to sources, Blackstone is in leading race to acquire HDFC's stake in Intelenet BPO. HDFC is in talks to sell 50% stake in Intelenet BPO. HDFC and Barclays Bank hold 50% stake each in the BPO.

Intelenet's FY07 revenue is at Rs 383 crore and EBITDA is at Rs 54 crore.

It could be one of the biggest private equity deals in the BPO space. International private equity player Blackstone is in talks to buy HDFC’s 50% stake in BPO company Intelenet.

HDFC may be finally looking to exit the BPO space. Private equity player Blackstone is in talks to acquire HDFC's 50 % stake in BPO company - Intelenet. It is not yet clear what will be the price.

In FY07, Intelenet earned a revenue of Rs 383 crore and an operating profit of Rs 54 crore.

Founded in 1994, Intelenet offers outsourcing services in the financial, retail, telecom and hospitality industries. It has more than 5,000 employees working out of four centers in Mumbai and Chennai.

Intelenet also holds a 51% stake in publicly listed Sparsh India, another BPO with FY07 sales of over Rs 87 crore. That stake itself is worth Rs 170 crore at current market valuations. HDFC entered Intelenet three years ago, when it acquired a 50% stake from TCS, for Rs 161 crore. The remaining 50 percent is held by Barclays Bank.

Now HDFC's 50% stake could be worth close to Rs 400 crore. That is because most BPOs are valued at one to one and a half times revenue. That's over Rs 600 crores in the case of Intelenet. Add to that, the Sparsh stake value and the BPO company's total valuation could near Rs 800 crores.

As of now, neither company has confirmed the deal.

2007-05-14 12:51:33 Source : Moneycontrol.com

Vipul ji

This is the value to be unlocked.

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Mohan
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Posted: 16/May/2007 at 11:15am

SLR cut to make HDFC Bank, HDFC merger easier: Aditya Puri

2007-05-16 17:31:12 Source : Moneycontrol.com

HDFC and HDFC Bank could be inching closer towards a merger. And the unwitting catalyst for that merger could be the RBI.

The long awaited HDFC merger with HDFC Bank has moved closer. HDFC Bank's Aditya Puri told CNBC- TV18 in an exclusive interview that if the RBI cuts the statutory liquidity ratio, or SLR, it would make it easier for the two entities to merge. He said that the merger will happen only when it makes cost sense for the two entities.

Since 1999, Puri has ensured that HDFC Bank consistently bags most awards for India's best managed banks. But the size and diversification available to his rivals like ICICI and UTI have eluded him. However, that scale and diversity may be closer now. HDFC Bank’s merger with HDFC could give a fillip if the RBI were to cut the SLR.

However, Puri did not reveal any more details saying that he is bound by his New York listing.

< ="http://202.87.40.52/promos/sponsor_news.js">

But the argument is clear. HDFC, which is the bank's parent company has a much smaller SLR obligation. But if the two entities merge, the SLR obligation would shoot up.

SLR is the minimum percentage of their deposits that banks have to invest in government bonds. It is currently at 25% but is expected to be cut by a few percentage points. Also, some tax advantages available to HDFC will be lost if it merges with HDFC Bank.

As far as Citibank's near 13% stake in HDFC and its indirect 2.5% stake in HDFC Bank was concerned, Puri said it was purely financial.

Citibank's stake purchase in HDFC made at a massive Rs 1000 crore was seen by the market as an effort to liaise with HDFC Bank in preparation for 2009, when foreign banks may be allowed a bigger role. As far as the future was concerned, Puri was confident of FY08 being a better year for the banking sector; the strong growth will mean his bank has to tap the equity market sometime this year.

For more, watch video...

Be fearful when others are greedy and be greedy when others are fearful.

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omshivaya
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Posted: 25/May/2007 at 2:34am

I don't know if the whole news item is known, so am posting it for the reference of TEDs.

Carlyle Picks Up 5.6% In HDFC For $650 Million; Citigroup Invests $117 Million

Housing Development Finance Corporation (HDFC) has received funding of Rs 2,638 crore or $650 million from private equity fund The Carlyle Group. The fund will purchase 15.25 million new shares in HDFC through a preferential allotment at Rs 1,730 a share. Post-transaction, Carlyle will own a 5.6 per cent stake in HDFC.

The investment will be made by Carlyle Asia Partners (CAP), which manages over $2.5 billion and makes large sized investments across non-Japan Asia.

HDFC has also raised Rs 476 crore ($117.5 million) from the existing investor Citigroup Strategic Holdings Mauritius. The firm has been issued about 27.5 million shares at Rs 1,730 a share. With this investment, the holding of Citigroup will be maintained at the same level of 12.3 per cent, according to Renu Karnad, Executive director of HDFC, reports CNBC-TV18.

The proceeds will support HDFC’s continued investment in banking, life insurance and mortgage businesses, a statement said.
The transaction is subject to shareholder approval and is expected to close in July this year. Carlyle was advised by investment bank DSP Merrill Lynch.

Source: www.vccircle.com

Edited by omshivaya - 25/May/2007 at 2:39am

The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it

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deveshkayal
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Posted: 22/Jun/2007 at 6:48pm

Merger between HDFC and HDFC Bank???????

Read this article

http://www.businessworld.in/content/view/1926/1989

"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett

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getmanoj
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Joined: 08/Sep/2006
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Posted: 28/Jun/2007 at 4:06pm

Recruit, reward, retain

A nice article (Although little old) ... abou the recruitment process in HDFC .
http://news.moneycontrol.com/india/news/management/recruitreward/recruitrewardretain/market/stocks/article/285975

Manoj

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xbox
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Posted: 28/Jun/2007 at 6:03am

Merger between HDFC and HDFC Bank???????

------------

As before I said, when world is demerging/spin-off, it makes little sense to merge the 2 businesses. We have seen it in case of ICICI, now SBI is also doing similar thing.

Also it makes more sense that holding company (NBFC) controls Banks rather than vice-versa (in case of ICICI or SBI). HDFC structure is the best, they don't have to change it.

But ruling-out anything completely in market is as difficult as market itself.

Don't bet on pig after all bull & bear in circle.

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pramodjain
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Posted: 25/Jul/2007 at 8:16pm

HDFC Q1 net up 25.6% to Rs.372.81 Crores

Housing Development Finance Corporation Ltd (HDFC) has announced the following Unaudited results for the quarter ended June 30, 2007.

The Company has posted a net profit of Rs 3728.10 million for the quarter ended June 30, 2007 as compared to Rs 2968.20 million for the quarter ended June 30, 2006. Total Income has increased from Rs 12485.30 million for the quarter ended June 30, 2006 to Rs 18303.90 million for the quarter ended June 30, 2007.

The company has reported an Earnings Per Share (EPS) of Rs.14.7 for the Quarter ending June 30, 2007 compared to Rs.11.87 for Quarter ending June 30, 2006.

The stock was trading at Rs.1952.70, down by Rs.22 or 1.11%. The stock hit an intraday high of Rs.1968 and low of Rs.1934.95. The total traded quantity was 44231 compared to 2 week average of 107859.

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basant
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Joined: 01/Jan/2006
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Posted: 25/Jul/2007 at 10:09pm

HDFC and HDFC Bank have been blesssed to grow at 25% and 30% respectively. How can someone say that compounding money at 25% is tough in India.

'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in

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