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HDFC acquires HomeTrust, Gruh Finance pie

In the first ever acquisition of its kind in the housing Development Finance Corporation Limited (HDFC) acquired the entire shareholding of HomeTrust Housing Finance Company Limited (HT), a 100 per cent subsidiary of Gujarat Ambuja Cements Limited (GACL).

The HT has now become a 100 per cent subsidiary of HDFC.

The housing major HDFC also acquired 26 per cent of the equity of Gruh Finance Limited (GRUH), which was held by GACL. HDFC now holds 54 per cent of Gruh's equity and consequently, Gruh has become a subsidiary of HDFC.

HT was acquired for a total consideration of Rs 500.1 million and Gruh shares were acquired for a total consideration of Rs 99.9 million, at the rate of Rs 14.50 per share.

The board of directors of HDFC and GACL, which met separately on Tuesday, approved the transactions.

Commenting on the acquisitions HDFC chairman Deepak Parekh said, in an increasingly competitive market, size brings, with it economies of scale which will ultimately benefit the customers. It will result in better utilisation of delivery channels. The acquisitions by HDFC will help it to increase its distribution strength and to deliver services and products to a large customer base more efficiently and cost effectively.

UNI

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